What exactly is TSP?

A thrift savings plan (TSP) is a type of retirement investment program open only to federal employees and members of the uniformed services, including the Ready Reserve. 1 It is a defined-contribution plan that offers federal employees many of the same benefits that are available to workers in the private sector.

What is a good personal investment performance percentage for TSP?

TSP returns for the past 12 months are excellent. One fund is up more than 62%. The Fund in second place returned 40.29%.

How long does it take to double TSP?

A. The rule of 72 is a way of determining how long it would take an investment to double if invested at a specific rate of return. You divide the rate of return into 72 to get the number of years. For example, if I received a 6% rate of return, my money would double in 12 years.

Is a TSP an IRA?

The Thrift Savings Plan (TSP) is not an Individual Retirement Arrangement (IRA) – and vice versa. Though they are both similar in that they are tax advantaged retirement savings plans, the rules can vary significantly, and those that are not aware of the differences can pay a price at tax time.

Is TSP a 457 plan?

The alternatives for government employees are known as 457(b) plans for state and local government workers and Thrift Savings Plans (TSPs) for federal government workers. Independent contractors are able to participate in either type of 457 plan. In general, both 457 plans and TSPs are very similar to a 401(k).

Can you get rich from TSP?

It’s an “elite club.” With over 75,000 members, the TSP millionaires received their title by contributing to the TSP for 25-30 years, being at least moderately aggressive with investing their funds. New members are welcome, but once you make it to the financial “top”, you need to work just as hard to stay there.

What do my TSP annual and quarterly statements mean?

Your TSP annual and quarterly statements provide a snapshot of your account activity. It’s important to review them thoroughly each time you receive them to identify any errors or unauthorized activity, and to see if you’re on track to meet your savings goals. Adjustments —The net amount of reversals of certain transactions.

How to divide a Thrift Savings Plan (TSP) account?

Divide a Thrift Savings Plan (TSP) account pursuant to a divorce, annulment, or legal separation. Authorize a Retirement Benefits Specialist (RBS) to act on your behalf regarding the submission of a retirement benefits court order (RBCO) related to a Thrift Savings Plan (TSP) account.

How do I use form TSP-U-1?

Form TSP-U-1 Use this form to: Start, stop, or change the amount of your contributions (including contributions toward the catch-up limit if you’re turning 50 or older). Return the completed form to your service’s finance office.

How do I contribute to the TSP catch-up limit?

To contribute toward the catch-up limit, use Form TSP-1, Election Form (or Form TSP-U-1 for uniformed services), or your agency’s or service’s electronic system (e,g., Employee Express, EBIS, LiteBlue, myPay, or NFC Employee Personal Page ). You can add any contributions toward the catch-up limit in the same place as your other TSP contributions.