Working for a government agency, you have more than likely heard of a Thrift Savings Plan (TSP), and most likely are investing in yours today. Like a 401(k) in the private sector, the TSP is a defined contribution plan established specifically for federal employees and members of the uniformed services, including the Ready Reserve.
Implemented by Congress in the Federal Employees’ Retirement System Act of 1986, this retirement savings and investment plan allows you and your agency to contribute a portion of your income each year. Agency contribution matches vary*.
Once you are eligible to retire, you can begin withdrawing from your account. The retirement income you receive will depend on how much you and your agency contributed to your account during your working years, and the earnings accumulated over that time.
If you are covered by the Federal Employees’ Retirement System (FERS), the TSP is one portion of a three-part retirement package that includes your FERS basic annuity and Social Security. If you are covered by the Civil Service Retirement System (CSRS) or are a member of the uniformed services, the TSP is a supplement to your CSRS annuity or military retired pay.
The TSP is a great place to help accumulate assets for retirement, but several employees lack the training and proper understanding of the investment options to take full advantage of the program, and are left with questions like, “How much should I contribute? Which investment options should I choose? How do I withdrawal my contributions pre- and post-retirement?”
To help you gain a better understanding of your TSP and find the answers to these and many more questions, join MyFedLife’s webinar, How Well Do You Know Your TSP?, Thursday, April 19th to learn all you need to know about your TSP. Topics will include TSP highlights, the funds, Traditional vs. Roth contributions, withdrawal options, annuitizing and more.
*Not all employees are eligible to receive agency contributions. Please contact your financial advisor or take a complimentary benefit analysis to learn more about your benefits package.
MFN 47 (4/2018)