Kirk G. Meyer

Thirft Savings Plan:: a Practical Guide to the Tsp Kirk G. Meyer First edition

The Thrift Savings Plan or TSP is a retirement benefit of US federal government employees similar to that of private employers? 401(k) plans. The TSP is open to all federal employees and uniformed service members and is designed as a long-term savings plan to be utilized for retirement. And like private 401(k) plans, the TSP is offered as a Traditional TSP or the newer ROTH TSP. The original TSP was first created by Congress in 1986, evolving over the years to resemble what federal employees and uniformed service members can utilize for their retirement today. Some of the advantages of the TSP over that of traditional 401(k) plans and individual retirement accounts is that it boasts some of the lowest fees of any investment that is offered to federal employees, uniformed service members, or the investing public at large. While at first it may appear that the TSP does not offer enough options for a plan participant to diversify, that could not be further from the truth. Also, like many private 401(k) plans the federal government offers an agency match for Federal Employees Retirement System (FERS) employees. Compounded over one?s entire career, the TSP combined with a retiree?s pension annuity and social security form the basis of one?s retirement from the federal government.