General TSP Info
What is the TSP?
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. It was established by Congress in the Federal Employees' Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans.
The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if you're eligible to receive agency/service contributions) put into your account during your working years and the earnings accumulated over that time.
Contribution Limits
The IRS sets annual limits on how much you can contribute to your TSP account. For 2024, the elective deferral limit is $23,000. If you are age 50 or older, you may also make catch-up contributions of up to $7,500, for a total of $30,500.
FERS employees receive agency automatic contributions of 1% of basic pay and agency matching contributions of up to 4% of basic pay, for a potential total agency contribution of 5%.
TSP Fund Options
| Fund | Type | Risk Level |
|---|---|---|
| G Fund | Government Securities | Very Low |
| F Fund | Fixed Income (Bonds) | Low |
| C Fund | Large Cap U.S. Stocks (S&P 500) | Medium-High |
| S Fund | Small/Mid Cap U.S. Stocks | High |
| I Fund | International Stocks | High |
| L Funds | Lifecycle (Mixed) | Varies by target date |
Inter-Fund Transfers
An inter-fund transfer (IFT) allows you to redistribute the money already in your TSP account among the available TSP funds. You can make two unrestricted IFTs per calendar month. After that, you can only move money into the G Fund for the remainder of the month.
IFTs are processed at the close of business on the day they are received (if received before 12 noon Eastern time) or the next business day (if received after 12 noon Eastern time).