Thrift Savings Plan (TSP)
The TSP is a retirement savings and investment plan for civilian employees of the United States Government and members of the uniformed services. TSP is similar to a 401K plan offered by many public and private corporations.
Simply so, how does the military Thrift Savings Plan Work?
If you are a member of the uniformed services who began serving on or after January 1, 2018, your service automatically enrolled you in the TSP (or will) once you had served 60 days and 3% of your basic pay is deducted from your paycheck each pay period and deposited in the traditional balance of your TSP account, …
Moreover, can you contribute to TSP after military retirement?
Once you leave the uniformed services, you’ll no longer be able to make contributions. However, you can still change your investment mix, transfer eligible money into your account, and enjoy our low costs—all while your account continues to accrue earnings.
How much does military pay TSP?
If you are deployed to a combat zone, you may be able to contribute up to $58,000 to your TSP in 2021, but the government contributions remain at 5% of your basic pay. Be aware that the additional combat zone contributions are limited depending on what type of TSP you have, Roth or Traditional.
What is the best fund to put my TSP in?
TSP Allocation Strategies 2021 – The Best Out There
- The F Fund – The Fixed Income Investment Fund.
- The C Fund – The Common Stock Index Investment Fund.
- The S Fund – The Small Capitalization Stock Index Investment Fund.
- The I Fund – The International Stock Index Investment Fund.
- The L Funds – Lifecycle Funds.
What is the TSP cap for 2020?
Can I take out my TSP early?
The taxable portion of your withdrawal is subject to federal income tax at your ordinary rate. Also, you may have to pay state income tax. An additional IRS early withdrawal penalty of 10% may apply if you’re under the age of 59½.
Should I leave my money in TSP?
Leave it in the TSP and let it grow
Depending on when you begin retirement, you can simply leave the money in the TSP let it continue to grow. If you do not need to access it yet, it might be wise to let it be. Similar to other retirement accounts, you will need to begin minimum withdrawals at age 72.