The Thrift Savings Plan is a retirement savings and investment plan designed for federal employees and members of the uniformed services, explains TSP.gov. It is a contribution plan, meaning the available retirement money is dependent upon the funds accumulated during the years as an employee.Continue Reading
The TSP offers participants savings and tax benefits similar to those offered to employees of private corporations under 401(k) plans, notes the plan's website. Among the included benefits are traditional and Roth contributions, automatic and matching contributions from the agency, catch-up contributions for those over 50, multiple fund investment options, in-service withdrawals, and the option to include other employee plans, such as an IRA.
TSP participants already covered by the Federal Employees’ Retirement System have a three-part retirement package, which includes FERS, TSP and Social Security, reports TSP.gov. Additionally, a FERS member account automatically receives 1 percent of a member's basic pay each pay period and 4 percent every time the participant contributes 5 percent of his pay to TSP.
The Thrift Savings Fund holds the assets of the TSP, and Federal Retirement Thrift Investment Board administers it. The FRTIB is an independent government agency led by five presidentially appointed members who have been sworn to manage the funds solely with the interest of the plan’s beneficiaries, explains the official TSP website.Learn more about Financial Planning