A thrift savings plan (TSP) – which was first created by the Federal Employee’s Retirement System Act of 1986 - is a defined, tax-deferred retirement savings plan for Federal employees, members of the armed forces, and all employees covered under the older Civil Service Retirement System (CSRS). A TSP is one of the three components that comprise the Federal Retirement System (FERS).

1. Thrift Savings Plan
2. FERS Annuity
3. Social Security

A TSP – which is administered by the Federal Retirement Thrift Investment Board – is designed to closely resemble the dynamics of the 401 (k) retirement plans offered by most private sector companies. Contributions to the plan are automatically deducted from each paycheck. By participating in the TSP, Federal employees to…

1. Save part of their income for retirement
2. Receive matching agency contributions
3. Reduce their current taxes

In the event of your death, if you have not already withdrawn funds, payments would be made to your survivors as follows:

1. Widow or widower.
2. Child or children
3. Descendants of deceased children by representation.
4. Retiree’s parents or to the surviving parent.
5. The executor or administrator of the retiree’s estate.
6. To any other of the retiree’s next of kin who is entitled under the laws of the state in which the retiree resided at death.

Or, if you prefer a different payment succession, you can fill our a designation form.

If you have any questions about what you have just read, or if you would like to know more about Thrift Savings Plans and retirement planning, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

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Sources:

Thrift Savings Plan

Thrift Savings Plan – TSP

Thrift Savings Plan (TSP)