The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.
Beside above, is TSP a qualified retirement plan for taxes?
The TSP is classified as a “defined contribution” retirement plan. It is similar to a private company-sponsored 401(k) qualified retirement plan or non-profit organization 403(b) qualified retirement plan.
In this regard, is TSP qualified or nonqualified? The federal Thrift Savings Plan is considered a qualified retirement plan.
Keeping this in consideration, is tsp an IRA or 401k?
A thrift savings plan is similar to a 401(k) plan but is open only to federal employees and uniformed services personnel. Participants in a TSP can get an immediate tax break for their savings or invest in a Roth for freedom from taxes after retirement.