How Do You Set Up A Thrift Savings Plan?
Civil service or Armed Forces federal employees are eligible to save for retirement in the Thrift Savings Plan (TSP). Similar to a private-sector 401(k), this tax-deferred account lowers your immediate tax liability and doesn’t require any tax payment on the principal or earnings until the money is withdrawn. Many employees are eligible for government matching funds, making the TSP a very solid investment in your present and future. Do the math and set up how much you can save. You can choose a percentage of your base pay or a dollar amount per pay period to be deferred. Save more by setting up an additional automatic monthly withdrawal from your checking account to reach your maximum contribution limit. You can also make additional payments with work bonuses, unexpected income or financial investment profits. Download and complete the Thrift Savings Plan (TSP) election Form TSP-1 for civilians or TSP-U-1 for uniformed service members from the TSP website (see Resources below). Researc
