The Thrift Savings Plan or TSP is the Federal Employee retirement plan. It’s equivalent to the 401k for Federal Employees.

In this video you’ll learn more about:
– How Much You Can Save in Your TSP?
– What Type of Plans Does the TSP Have?
– What Investment Options Do I Have in the TSP?

In 2018 you can contribute up to $18,500 into the Thrift Savings Plan. If you are over the age of 50 you can contribute an additional $6,000 bringing your total to $24,500.

In 2019 your maximum TSP contribution will be $19,000 if you are under the age of 50. If you’re over 50 you can contribute an additional $6,000.

For more information about the TSP please visit

Nathan Garcia is a Retirement Planning Specialist for Strategic Wealth Partners. He helps clients…(read more)

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What is the Thrift Savings Plan (TSP)?

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services, such as the military. It was established by the Federal Employees’ Retirement System Act of 1986 and is considered one of the most valuable retirement benefits provided to federal workers.

The TSP is similar to a 401(k) plan that is available to private sector employees. It is designed to offer federal employees a way to save and invest for their retirement in a tax-advantaged manner. The plan allows participants to make contributions from their salary, which can be done on a pre-tax basis (traditional TSP) or after-tax basis (Roth TSP), depending on their preference.

One of the key benefits of the TSP is the ability to take advantage of automatic employer matching contributions. For the first 5% of an employee’s salary that they contribute to the TSP, the federal government automatically matches their contributions dollar for dollar. This is a generous benefit that provides an immediate return on investment and encourages federal employees to save for retirement.

The TSP offers several investment options to participants, including various lifecycle funds, which are diversified portfolios that automatically adjust the asset allocation based on the participant’s retirement timeline. It also provides individual funds consisting of various asset classes like stocks (C Fund), bonds (F Fund), international stocks (I Fund), and government securities (G Fund). Participants can choose to allocate their contributions among these funds based on their risk tolerance and investment goals.

Another advantage of the TSP is the low fees it charges for investment management. The funds offered within the TSP have expense ratios that are significantly lower compared to many other retirement plans, making it a cost-effective option for retirement savings.

Once a participant reaches the eligible age for retirement (which varies based on their employment status and the specific rules of their retirement system), they can start withdrawing funds from the TSP. They have the option to take a lump sum payment, make periodic withdrawals, or purchase an annuity to provide a steady stream of income in retirement.

Although the TSP is primarily targeted towards federal employees and members of the uniformed services, it has gained recognition as an excellent retirement savings vehicle due to its low fees, automatic employer matching contributions, and various investment options. The TSP has proven to be an effective tool for helping individuals build a substantial retirement nest egg.

In conclusion, the Thrift Savings Plan (TSP) provides federal employees and members of the uniformed services with a valuable retirement savings and investment opportunity. With features like employer matching contributions, a variety of investment options, and low fees, the TSP is a beneficial tool for building a secure financial future. It encourages individuals to save for retirement and provides them with the means to invest their savings wisely.