- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
You can elect to stop or change your contributions at any time. Check with your payroll office or agency to find out how to sign up for TSP. You may be required to use your agency or service’s electronic system, or you may have to submit Form TSP-1 (Form TSP-U-1 for uniformed services). The Thrift Savings Plan website has the forms available if your agency or service accepts them.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”28002″ img_size=”293×286″ style=”vc_box_shadow”][/vc_column][/vc_row][vc_row el_class=”section section4″][vc_column width=”1/3″][vc_single_image image=”28000″ img_size=”279×273″ style=”vc_box_shadow”][/vc_column][vc_column width=”2/3″][vc_custom_heading text=”TSP funds” font_container=”tag:h2|font_size:20px|text_align:left|color:%23363636″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” css=”.vc_custom_1527247090362{margin-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1527241648849{margin-right: 0px !important;}”]There are five core funds in the Thrift Savings Plan- four of them are index funds, which mean that they are exactly matched to a broad market index.
- G Fund (Government Securities Investment Fund)
- This fund does not invest in an index. The only fund that it is connected to is a nonmarketable treasury security issued for the TSP by the U.S. Lowest return and risk
- F Fund (Fixed Income Investment Index Fund)
- Matches the Barclays Capital U.S. Aggregate Bond Index. Slightly higher return and slightly higher risk.
- C Fund (Common Stock Index Investment Fund)
- Out of the three stock funds in the TSP, the C is considered the most conservative. It is connected to the Standard and Poor’s 500 Index, which has greater volatility than either the G or F funds.
- S Fund (Small Capitalization Stock Index Fund)
- This fund is connected to the Dow Jones U.S. Completion Total Stock Market Index, which is a total of 4,500 companies that fall outside of the S&P 500’s list. Potential for large growth, but also large losses.
- I Fund (International Stock Investment Fund)
- The only internationally invested fund. High risk, but potentially high reward.
There is another option for Thrift Savings Plan investment funds- the L funds. These are funds that actually invest in a variety of all the other funds and target a specific retirement date, initially investing in the more aggressive funds and slowly moving into the more stable bonds funds as retirement approaches.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_custom_heading text=”How to change my TSP contribution” font_container=”tag:h2|font_size:20px|text_align:left|color:%23363636″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” css=”.vc_custom_1527247118723{margin-bottom: 20px !important;}”][vc_column_text]If you have not made a contribution election through your agency to start contributions or change the way your contributions work, there are a few steps:
- Ask your personnel or benefits office whether your agency or service handles enrollments
- Determine the amount you want to contribute and whether you want a Roth or Traditional TSP
- Return your completed TSP-1 or TSP-U-1 to your employer to get your payroll deductions set up. Your election should be effective no later than the first full pay period after your agency or service receives it.
[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”25543″ img_size=”279×273″ style=”vc_box_shadow”][/vc_column][/vc_row][vc_row][vc_column width=”1/3″][vc_single_image image=”28001″ img_size=”279×273″ style=”vc_box_shadow”][/vc_column][vc_column width=”2/3″][vc_custom_heading text=”Withdrawing from the TSP” font_container=”tag:h2|font_size:20px|text_align:left|color:%23363636″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” css=”.vc_custom_1527247146075{margin-bottom: 20px !important;}”][vc_column_text]You have several withdrawal options that you can choose from. Partial withdrawals are allowed in a single payment. You can also make a full withdrawal with any one or any combination of the following methods:
- A single (lump sum) payment
- A series of monthly payments
- A life annuity (Thrift Savings Plan Lifetime payment options).
A combination of any of these three full withdrawal options is called a “mixed withdrawal.” You can have the Thrift Savings Plan transfer all or part of any single payment or, in some cases, a series of monthly payments, to a traditional IRA or an eligible employer plan by completing the TSP-70 form. Payments to you can be deposited directly into your checking or savings account using electronic funds transfer (EFT).[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_custom_heading text=”Spouse’s Rights” font_container=”tag:h2|font_size:20px|text_align:left|color:%23363636″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” css=”.vc_custom_1527247169854{margin-bottom: 20px !important;}”][vc_column_text]If you are a married Thrift Savings Plan participant (even if you are separated from your spouse), spouses’ rights apply to annuity purchases. If you are a married FERS or uniformed services participant with a total account balance of more than $3,500 and you are making a full withdrawal of your account, your spouse is entitled by law to an annuity with a 50% survivor benefit, level payments, and no cash refund. If you choose any other withdrawal option or combination of options by which your entire account balance is not used to purchase this particular type of annuity, your spouse must sign the statement on your withdrawal form that waives his or her right to that annuity.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”28002″ img_size=”279×273″ style=”vc_box_shadow”][/vc_column][/vc_row]
