The Thrift Savings Plan (
TSP) is a retirement savings and investment plan for Federal employees covered by the Federal Employees Retirement System (
FERS) and the Civil Service Retirement System (
CSRS).
The TSP offers:
- before tax savings and tax deferred investment earnings
- low administrative and investment expenses
- a choice of five individual investment funds and five lifecycle funds
- interfund transfers
- an attractive loan program
- a choice of withdrawal options
The TSP is a contribution plan. Contributions include those made by you and any matching contributions made by your agency. The retirement income received depends on how much you contribute to your account during your working years and the earnings on those contributions. Contributions made to the TSP account are voluntary and separate from contributions to the FERS or CSRS annuity. If you are a newly hired employee, you must wait a certain period of time before you are eligible to participate in TSP. There are two Open Seasons held each year: May 15 - July 31 and November 15 - January 31.
TSP is an integral part of the FERS employee retirement package. As a FERS participant, you can contribute up to the IRS limits on regular and catch-up contributions, which are $18,500 and $6,000 respectively for 2016. You are also entitled to receive agency contributions. Once you are eligible to participate in TSP, the agency contributes an amount equal to 1% of basic pay each pay period. When you begin contributing to your TSP account, your agency makes matching contributions that apply to the first 5% of pay each pay period. Your contributions are matched dollar for dollar for the first 3% and 50 cents on the dollar for the next 2%.
As a CSRS employee, you do not receive agency matching or 1% contributions, but you may contribute a portion of your basic pay to the TSP.