What is TSP Really and Exactly how Can I Retire a Millionaire?

Before we get into the details of giving answers to the legendary question, what is tsp ? We will supply you with the basic information first.

The Thrift Savings Plan, also referred to as TSP, is a Federal Government sponsored retirement savings and investment plan. This plan is exclusively for federal government employees and members of the uniformed services. The Thrift Savings Plan has Five major fund options you can possibly purchase. They are all based upon index funds.

The C Fund: The goal of the C Fund is to match the performance of the S&P 500 Index, a diverse market index comprised of stocks of 500 large to medium-sized U.S. companies.

The S Fund: The goal of the S Fund is to match the performance of the DJW 4500 Index, an extensive market index comprised of stocks of U.S. companies not included in the S&P 500 Index..

The F Fund: The goal of the F Fund is to match the performance of the LBA Index, a diverse index representing the U.S. bond market.

The I Fund: The goal of the I Fund is to match the performance of the EAFE or the Europe, Australasia, Far East Index.

The G Fund: Government Securities fund. These are distinctive government securities not available to the general public and so are guaranteed through the complete faith and credit of the US Government. The G Fund was the initial fund established by the TSP when it began operations on April 1, 1987.

What is TSP Contribution Limits?

The Thrift Savings Plan uses precisely the same contribution guidelines as the 401(k). Ever since the Thrift Savings Plan’s beginning, contributions are in fact taken before federal payroll taxes are deducted. Because of this, an individual’s federal tax responsibility is reduced in the year of contribution, but federal taxes have to be paid after the funds are withdrawn in retirement.

TSP is in a group of three tiers for the Federal Employees Retirement System. Federal employees will earn Social Security credit while working with the federal government. Federal employees contribute to their Thrift Savings Plan accounts in three ways — agency automatic contributions, employee contributions and matching contributions.

Retirement expense for Quarter III, 2011 was $1,455 million compared to $1,439 million for the same period last year. The Thrift Savings Plan is a retirement plan setup for federal employees to aid those employees save towards their retirement. TSP is a tax deferred retirement plan. Tax deferred retirement plans invest money from your paycheck before any taxes are taken out.

Contributions to the actual majority of the plans that are out there are made pre-tax. Contributions to the Thrift Savings Plan are tax deferred, therefore you don’t pay taxes on donations once you make them. Contributions to TSP continue to be subject to Internal Revenue Code elective deferral limits. Previously eligible to receive agency contributions An employee reappointed to a position covered by FERS who was previously eligible to receive agency contributions is immediately eligible to receive agency contributions. The matching contributions apply only to amounts contributed from basic pay and never from any incentive pay or special pay.

We are making a pretty confident claim that we can back up by allowing a two month free membership here. What is our claim? That we earn at least 12% every year no matter what the economy is doing. What is TSP and why the confidence? It really is pretty easier for other programs around to try to make claims but none offer free membership. Period.

Any $10,000 TSP Account can grow to $2,549,715 in 30 years Before you retire.

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