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TSP (Thrift Savings Plan): FERS

TSP (Thrift Savings Plan): FERS

Commonly Asked Questions:

How much should I contribute to TSP?
Is the L Cycle the best way to invest my TSP?
What type of annuity does TSP offer when I retire?
What are the pro’s and con’s to taking a TSP Loan?
How often should I move my allocations?

TSP (Thrift Savings Plan) & FERS:

  • mandatory distribution at 70 1/2 years of age
  • immediate employee contributions, before-tax savings and tax deferred earnings
  • Participants have their choice of investment funds, with the ability to change contribution allocations daily as well as making inter-fund transfers
  • offers loans, withdrawals, freedom to participants in designating their own beneficiaries as well as website account information.
Did you know? TSP is a "contribution" plan in which contributions are voluntary and offers a 100% return up to a 5% match of your income.

 

Employee Contribution Govt.Contribution
0% 1% (G Fund only)
1% 2%
2% 3%
3% 4%
4% 4.5%
5% 5%
Over 6%-$18,000/yr 5%


(Cap = $18,000 + 6,000 = $24,000)

TSP & FERS Contribution Example:

Salary – 58,000 (No Cost of Living Increase)

  • 5% Individual Contribution
  • 5% Matching by Agency
  • 10% or $5,800/year
  • 6% Average Growth Rate Increase

Total Earnings:

  • Year 5 = $34,656
  • Year 10 = $81,035
  • Year 15 = $143,100
  • Year 20 = $226,157

To get these answers and more, contact FEB for a
Personalized Retirement Road Map.