Website: Thrift Savings Plan (TSP). The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. It was established by Congress in the Federal Employees’ Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans. By participating in the TSP, Federal employees have the opportunity to save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.
In addition to the TSP site itself, a great source for understanding the TSP program and the options available for TSP participants – uniformed and civilian – is the official TSP YouTube site. Various topics covered in multiple videos include understanding why investment expenses matter, understanding the Roth TSP, frequently asked questions, and withdrawals along with many more.
The TSP is considered among the best available retirement savings plans. One indication of that fact? The low expense ratio. In 2012, the expense ratio for each of the available funds was 0.027%. For those that are familiar with the negative impact of fees, that incredibly low rate can be appreciated. If you are a uniformed service or civilian member, I strongly encourage you to visit both sites as they will assist you in fully understanding the TSP and how it can benefit you in your quest for a comfortable retirement. Additionally, if you know someone, perhaps a family member that is a service member or civilian employee, you should encourage them to check out both sites.
You can follow the TSP on Twitter @tsp4gov