Recently, Michael Kitces published an article titled, “Why Paying Yourself 5% Interest On A 401(k) Loan Is A Bad Investment.” My first thought was, “If it’s a bad idea for a 401(k) loan, it must be even worse for Thrift Savings Plan loans.” After all, the interest on a TSP loan is nowhere near 5%…it’s […]
Thrift Savings Plan - Military & Civil Service Retirement Plan - Archives
The Thrift Savings Plan is the government and military retirement plan, similar to a civilian 401k plan. This Thrift Savings Plan Guide provides a general overview of the Thrift Savings Plan, including how you can start your TSP account, the benefits of the TSP, pros and cons, how to diversify your investments, and much more.
Additional articles you may find helpful (or browse our archives):
- Thrift Savings Plan Basics & Why You Should Participate (Podcast 001).
- How to Manage Your Thrift Savings Plan Account.
- Thrift Savings Plan Contribution Limits & Rules – Deployed Contributions, Agency Match, & More.
- Thrift Savings Plan Lifecycle Funds – What You Need to Know About TSP Target Date Funds.
- Why the TSP Has Enough Diversification for Any Investor.
- What Should You Do with your TSP When You Leave the Service?.
- Thrift Savings Plan Rollover Guide – How to Transfer Your TSP into an IRA – with Instructions for Tax-Exempt Contributions.
Explore our archives for more advanced articles and case studies on managing your TSP account, rolling over your TSP into an IRA, or converting your Thrift Savings Plan into a Roth IRA.
Congress created the Thrift Savings Plan as part of the Federal Employees’ Retirement System Act of 1986. The Thrift Savings Plan offers the same tax and retirement savings benefits that individuals receive from their 401(k) plans through private corporations. It was available to federal civil service employees upon its creation. But, members of the uniformed forces, […]
John is an Active Duty Coast Guard Officer, currently stationed in Massachusetts. He has been helping his wife escape $107,000 in student loan debt. Together with their dog and a new baby on the way, they are on the path to Financial Independence and Early Retirement. He blogs about the journey at MilitaryFIRE.com. Check him […]
I’ve written several articles about Roth conversions, particularly tax planning considerations & marginal tax rate impacts. This article serves as a case study to help visualize how a Roth conversion strategy could work, and how the tax liability can fluctuate based upon the timing of Roth conversions. There are many variables that affect tax liability […]
Many people have taken advantage of the Roth TSP option since its inception in 2012. However, there are still many federal employees and service members with most of their retirement savings in traditional accounts. Naturally, this begs the question: “How do I convert my traditional account to a Roth account?” This is also known as […]
http://traffic.libsyn.com/militarywallet/TMW_027_TSP_Contributions.mp3Podcast: Play in new window | DownloadSubscribe: Apple Podcasts | Android | Google Podcasts | RSSThrift Savings Plan officials recently released the 2018 Thrift Savings Plan Contribution Limits. Thrift Savings Plan contribution limits are calculated on an annual basis based on cost of living indexes and can increase based on rules set by the IRS. […]
There are a lot of people who wonder what TSP’s Lifecycle funds (or L-funds) are, what they are supposed to do, and how they are supposed to invest in them. This article aims to answer some of these questions and provide a little clarity. When used properly, the Thrift Savings Plan Lifecycle Funds can help investors […]
Diversification is one of the most important attributes of a solid investment strategy. Many people dislike the Thrift Savings Plan (TSP) because they feel it doesn’t have enough diversification. This is an easy point to make, since TSP only has 5 investment funds, not counting the Lifecycle funds, which are target-date funds (or fund of […]
Let’s face it. The Thrift Savings Plan doesn’t come with an instruction manual. If you joined the military or federal government you’ve likely only had approximately 1-2 hours of instruction/briefings on your Thrift Savings Plan. During this presentation you were likely given very basic guidance regarding your options and if you were lucky, you had […]
Before I joined the Air National Guard last year, I decided to transfer the funds from my Thrift Savings Plan account into an IRA. There are many pros and cons for deciding to transfer your funds to an IRA, so this is something you should look at from all angles before deciding to make the […]