Maximizing your Thrift Savings Plan (TSP)

 

Your Thrift Savings Plan (TSP) is a federal government-sponsored retirement savings and investment plan that offers the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. As a defined contribution plan, the retirement income you receive from your TSP account will depend on how much you have contributed to your account during your working years and the earnings on those contributions.

You may elect to contribute any percentage (1 to 100) of your basic pay. However, your annual dollar total cannot exceed the Internal Revenue Code limit. Contact Federal Educators of America and let us help you navigate you through the details of your TSP.

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The TSP offers the following:

  • Immediate member contributions
  • Before-tax savings and tax-deferred investment earnings
  • Daily valuation of accounts
  • Low administrative and investment expenses
  • Transfers into the TSP from other eligible retirement plans or traditional IRAs and eligible employer plans
  • Ability to make contribution allocations and interfund transfers daily
  • Loans from your own contributions and attributable earnings while you are in service
  • Catch-up contributions for participants age 50 or older
  • In-service withdrawals for financial hardship or after you reach age 59½
  • Portable benefits and a choice of withdrawal options after you separate from service
  • Ability to designate beneficiaries for your account balance
  • Spouses’ rights protection for loans and withdrawals and recognition of qualifying court orders
  • A website with general account information, capability for requesting contribution allocations and interfund transfers, the option of initiating (and possibly completing) loan and withdrawal requests online, up-to-date TSP materials and information, online participant statements, and calculators to estimate account growth, loan payments, and annuity amounts, as well as an elective deferral calculator
  • An automated telephone service, ThriftLine, for account information and certain transactions

Contact us today to set up your complimentary retirement planning review. Call (844) 877-3863.

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Not affiliated with the U.S. Federal Government or any government Agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments and guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.