| What is the Military Thrift Savings Plan? |
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BBKT
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| What is the Military Thrift Savings Plan? |
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Hello,
My husband has been in the Air Force for the last 9 years and he's planning on making a career out of it (11 plus more years). He's a SSgt (E-5) right now, about to make TSgt (E-6). He has never contributed to a thrift savings plan before, but we have extra income coming in and we'd like to start putting the money into longterm savings, possibly extra retirement. So what exactly is the TSP, is it like a 401K? And what are the options, rules, contributions, etc?
Thanks!
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Fri Aug 06, 2010 6:24 pm |
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coaster
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Yes, that's what it is. But the members who were in the know and could answer your questions about the TSP aren't active here any more. Your husband should be able to get this information.
~Tim~
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Sat Aug 07, 2010 4:09 pm |
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MrPolarZero
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the Military TSP is basically a retirement savings program for civilian federal employees and military members. It is a tax-deferred fund, which means the money contributed to the account is deducted right away from the person’s taxable income.
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Fri Feb 04, 2011 4:52 am |
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keshavmish
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We've all been hearing about it, TSP, so what is it? The TSP, or Thrift Savings Plan, is a retirement savings plan for civilians who are employed by the United States Government and members of the uniformed services. This plan is similar to a 401(k) retirement plan used by the private sector.
So why would you choose to invest in TSP? There are several reasons to choose the TSP for your retirement savings. Some of those include but are not limited to:
o You save money on income taxes.
o You have a choice of 5 investment funds.
o All of the money you have deducted from your pay goes into your investment account, and no income tax is deducted.
o You don't pay the tax until you withdraw money, usually during retirement.
o Contributions of your tax-exempt combat or hazardous-duty pay retain their tax-exempt status, so you won't pay tax on this money, even when you withdraw it.
o If you need access to your money, you can borrow from your TSP at a low rate of interest.
o Personal loans can be for up to five years.
o Loans to purchase your residence can be for up to 15 years.
o Your loan is repaid through payroll deductions; it's like borrowing from yourself.
o TSP offers in-service withdrawals for financial hardship, or after age 59.
o You are given a choice of post-separation withdrawal options.
o You are given the ability to transfer money from other eligible retirement savings plans into your TSP account.
http://www.youtube.com/watch?v=6AIstoTbGCI
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Sat Aug 20, 2011 12:37 pm |
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chrisgayle
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The Thrift Savings Plan (TSP) is a defined contribution plan for United States civil service employees and retirees as well as for members of the uniformed services. The TSP is one of three components of the Federal Employees Retirement System. It is also open to employees covered under the older Civil Service Retirement System (CSRS). FERS employees are eligible to join TSP immediately upon starting work and may join at any time thereafter.
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Tue Aug 23, 2011 12:05 pm |
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