Thrift Savings Plan
The Thrift Savings Plan (TSP) is the Federal 401(k) program. Both FERS and CSRS employees are eligible to contribute to the plan, however only FERS employees may receive up to a 5% match on contributions. There are two TSP investment options to consider: a Traditional TSP and a newly added Roth TSP. Employees may contribute to both plans. The TSP is made up of five funds, the G, F, C, S, and I. There are also Lifecycle funds (L funds) that combine all five funds in a pre-determined mix.
The Internal Revenue Service has established the following pension plan limitations for the 2018 tax year.
- Contributions made to 401(k), 403(b), most 457 plans, and the federal government’s retirement account Thrift Savings Plan (TSP), have increased to $18,500.
- TSP Catch-up contribution limits for employees over the age of 50 are $6,000. Therefore the overall TSP contribution limit is $24,500 again assuming the employee is over age 50.
We created the video below to provide you with additional information about TSP Investments.
To learn more about the TSP funds, see the links below.
TSP L Funds
Below is an article regarding TSP withdrawals.
TSP Withdrawal Techniques: Under Age 59.5