Is All Your TSP Money Yours?
Within your TSP.gov Account the money you invest in the Thrift Savings Plan (TSP) and the agency match is yours immediately and you are therefore vested. However, the agency’s automatic 1% contribution has a few strings attached.
For individuals in the Civil Service Retirement System (CSRS
- Also Read: Why Federal Workers Are Snapping Up Military Buyback Opportunities
- Also Read: Federal Workers, Here’s How to Manage Your TSP for a More Comfortable Retirement
- Also Read: Ready to Retire? Here’s the Best Retirement Advice for Federal Employees in 2024
FERS employees on the other hand receive matching funds into their TSP.gov account along with an automatic 1% contribution. FERS employees are eligible to keep the 1% contribution after becoming vested by acquiring tenure of at least 3 years with the Federal Government. FERS employees who work in the Congress and certain other non-career employees need only 2 years to become vested in the Thrift Savings Program.
If you are participating in the Thrift Savings Program and decide to leave the federal service prior to the 3 year vesting period, the automatic 1% and the earnings from the agency 1% contribution will no longer be yours to keep. However if you die before leaving service you are vested in all the monies in your Thrift Savings Program account.
Your TSP.gov account (see your account here) is a wonderful vehicle for not only managing taxes but helping federal and postal employees save for retirement.
P. S. Always Remember to Share What You Know.
You may also find information on your TSP Funds interesting, or certain Tax implications of your TSP.gov investments.
RELATED TSP ARTICLES
Thrift Savings Plan (TSP) Withdrawal Options
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Federal and Postal Employees – Choosing a Financial Professional
