FBC
Federal Benefits Counselors
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.
The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency, if you are eligible to receive agency contributions) put into your account during your working years and the earnings accumulated over that time.
Traditional contributions come out of your pay before tax, and investment earnings are tax-deferred. Roth contributions come out of your pay after-tax and are tax-free when withdrawn. Earnings on Roth contributions are paid tax-free when withdrawn as long as certain IRS rules are met.If you are a FERS employee, you will receive Agency Matching Contributions from your agency based on your regular employee contributions. There is no waiting period but you do have to make regular employee contributions each pay period to receive them. Matching Contributions are not subject to vesting requirements.
Contributions – CSRS
Up to $17,000 (no percentage limit) for 2009 (inflation adjusted thereafter).
$5,500 catch up provisions for Employees age 50 and over.
No Government matching for CSRS.
CSRS & FERS
In-Service Age-based withdrawal.
Employee may withdraw one time, all or part of their TSP while working for government at age 59 1/2 or older with no interruption while continuing to contribute.
