Is the TSP good for retired Feds?

However, if you are a retired Fed, you may “have a problem Houston.” Although the TSP is rightfully applauded as a great retirement accumulation vehicle, it falls short on the retirement distribution side in one meaningful way.

Is the Thrift Savings Plan for federal employees?

To many federal employees, the Thrift Savings Plan (TSP) is the most valuable piece of their retirement puzzle. To maximize your TSP, you’ll need to do more than just contribute; you will also need to steer clear of these common mistakes:

Can a retired law enforcement officer use the TSP?

Law enforcement officers who retire prior to age 55 may look at utilizing the IRS 72 (t) program to pull from their retirement accounts. Since this withdrawal rate is based on individual accounts, it often makes sense to split the primary account into two so that the 72 (t) formulas will only apply to one of them.

How much money can you take out of TSP per month?

According to Richard’s plan, he needs to take $3,000 per month to fund his retirement lifestyle. Per the rules, each dollar withdrawn from the account will be comprised of 60% C Fund and 40% G Fund.

Why is the TSP important to federal employees?

It was designed to help you save for your future. If you are covered by the Federal Employees’ Retirement System (FERS), the TSP is a critical component of your Federal retirement benefits and may represent a significant part of your retirement income.

Is the TSP a good plan for retirement?

The TSP is rightfully regarded as one of the best retirement plans around for people while they are working. It is very low cost, has broad diversified investments, and allows significant employee contributions to go with a match of up to 5%.

Is the Thrift Savings Plan available to federal employees?

TSP and FERS Employees. The Thrift Savings Plan is a retirement package for federal employees. Almost all federal employees are eligible for this program, and TSP and FERS work very well together. Employees make optional contributions to an account, which are then matched by their employers. Matching contributions only apply to 5% of your salary.