Thrift Savings Plan Investor Handbook: A Comprehensive Guide for Federal Employees

The Thrift Savings Plan (TSP) is a retirement savings and investment program for federal employees and members of the uniformed services. It is a defined contribution plan, which means that employees contribute a portion of their salary to the plan and the government contributes a matching amount. The TSP offers a variety of investment options, including mutual funds, bonds, and stocks.

The TSP is a great way to save for retirement. It offers low fees, tax-deferred growth, and a variety of investment options. If you are a federal employee, you should consider enrolling in the TSP and taking advantage of the benefits it offers.

Thrift Savings Plan Investor's Handbook for Federal Employees

by FEDweek

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Language	:	English
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How to Enroll in the TSP

To enroll in the TSP, you must complete a TSP Election Form (Form TSP-1). You can get this form from your Human Resources (HR) department or from the TSP website.

Once you have completed the form, you will need to send it to the TSP. You can mail the form to the following address:

TSP PO Box 7010 Washington, DC 20044

You can also enroll in the TSP online by visiting the TSP website.

How to Contribute to the TSP

Once you are enrolled in the TSP, you can begin contributing to your account. You can contribute a portion of your salary to the TSP, or you can make lump-sum contributions.

The minimum contribution amount is $50. The maximum contribution amount is $19,500 in 2023.

You can change your contribution amount at any time by completing a TSP Election Form (Form TSP-1).

How to Invest Your TSP Money

The TSP offers a variety of investment options, including mutual funds, bonds, and stocks. You can choose to invest in one option or a combination of options.

The TSP also offers a Lifecycle Fund, which is a target-date fund. The Lifecycle Fund automatically adjusts your investment mix as you get closer to retirement.

When choosing investment options, it is important to consider your risk tolerance and investment goals. If you are young and have a long time until retirement, you may want to invest in a more aggressive investment option. If you are closer to retirement, you may want to invest in a more conservative investment option.

How to Withdraw Money from the TSP

You can withdraw money from the TSP when you retire, leave federal service, or become disabled.

When you withdraw money from the TSP, you will have to pay taxes on the earnings. However, you can avoid paying taxes on the earnings if you roll the money over to an IRA or another qualified retirement plan.

The TSP is a great way to save for retirement. It offers low fees, tax-deferred growth, and a variety of investment options. If you are a federal employee, you should consider enrolling in the TSP and taking advantage of the benefits it offers.

Thrift Savings Plan Investor's Handbook for Federal Employees

by FEDweek

4.5 out of 5

Language	:	English
File size	:	1896 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	218 pages
Lending	:	Enabled

FREE