TSP: The Thrift Savings Plan
The "401k" for Federal Employees, the Thrift Savings Plan (TSP) is a contribution plan managed by the Federal Retirement Thrift Investment Board and the Employee Thrift Advisory Council (Employee Organizations, Unions, and Uniformed Services).
- Voluntary Payroll Deductions
- "Pre-Tax" Contributions
- Tax-deferred investment earnings
- Immediate income tax savings
- Investment Funds (G,F,C,S,I and L-Cycle)
- Catch-up Provision for individuals 50+ years of age*
All participants enjoy a maximum annual contribution of $16,500, and benefit from immediate employee contributions.
*up to an additional $5,500 annually
TSP Investment Funds:
- G Fund (Government Securities): Conservative investment fund tied to US Treasury Bills
- F Fund (Fixed Income Index): Balanced investment fund tied to Bonds
- C Fund (Common Stock Index): Moderate investment fund tied to S&P 500
- S Fund (Small Cap Index): Growth fund tied to small and midsize companies and real estate funds
I Fund (International Fund): Aggressive funds tied to Foreign Currency.
- L Fund: NEW, Lifecycle fund in which automatic allocations of your contributions into the original five funds based on your desired retirement date & growth