Thrift Savings Plan

jeffm1999

New Member
I was wondering if anyone could shed some light on the Thrift Savings Plan offered to controllers. Specifically, does the government provide any matching contributions and what types of investment options are available?

I have heard it is similar to a 401k, but the finer points are somewhat of a mystery to me.
 
I was wondering if anyone could shed some light on the Thrift Savings Plan offered to controllers. Specifically, does the government provide any matching contributions and what types of investment options are available?

I have heard it is similar to a 401k, but the finer points are somewhat of a mystery to me.

The easy answer is that the government will match the first 4% of your contributions.
 
The real answer, as it was explained to me is:

You get 1% free. You put in nothing and Uncle Sam still gives you 1%.

They match dollar for dollar the next 2%. (Total of 3% so far, matching if you're putting in 2%)

The next 2% is matched at 50 cents on the dollar. Uncle Sam will match up to 5% maximum. So in order to get the max of 5% matching, you need to contribute at least 6% of your pay.

So if you contribute 6%, you're really getting 11%. If you contribute 10%, you're really getting 15%.

Clear as mud?
 
The real answer, as it was explained to me is:

You get 1% free. You put in nothing and Uncle Sam still gives you 1%.

They match dollar for dollar the next 2%. (Total of 3% so far, matching if you're putting in 2%)

The next 2% is matched at 50 cents on the dollar. Uncle Sam will match up to 5% maximum. So in order to get the max of 5% matching, you need to contribute at least 6% of your pay.

So if you contribute 6%, you're really getting 11%. If you contribute 10%, you're really getting 15%.

Clear as mud?

Great description Swinte! just wanted to clear one thing up though, 5% contribution gets you 5% matching not 6% contribution. They match 3% dollar for dollar, then 50 cents for the next 2%.

So when you put 5% of your pay in they match 4%... plus the automatic 1% gives you 5% contribution = 5% matching.

Important thing though is it is NOT matched right away... they start on June and December 1, if your start date is Nov 30... you get matched starting the following June, if your start date is Dec 2, you get matched the following December if I'm not mistaken... lucky for me I started last November so my matching started this June.
 
I started in July and was getting matched on my first paycheck where my 5% was taken out.

good info! didn't know it was updated.

Prior to June 22, 2009, FERS employees became eligible for agency contributions after a waiting period of up to one year, depending on their date of hire. This waiting period was eliminated with the passing of new legislation (P.L. No. 111-31). As a result, FERS employees who were still in the waiting period as of June 22, 2009, are now eligible for Agency Automatic Contributions. They are also eligible for Agency Matching Contributions if they are contributing their own money. Agencies have until the first full pay period of August 2009 to implement the necessary changes to their payroll systems.

thats on the TSP website... so I was one of the last ones to get shafted :yup:
 
So when you put 5% of your pay in they match 4%... plus the automatic 1% gives you 5% contribution = 5% matching.
Ahh...

Thanks for the clarification! I must have misunderstood.

Do I still get at least a point for giving a ballpark answer? :D
 
Thanks for the info guys. I was hoping the matching contributions wasn't only in the private sector. That is one benefit I didn't want to lose.

So, are there basically endless places to invest your money, or are there only a few modeled funds to choose from? If there is a page on the OPM site that explains all the options and someone can post a link I can do my own research.

Thanks!
 
Thanks for the info guys. I was hoping the matching contributions wasn't only in the private sector. That is one benefit I didn't want to lose.

So, are there basically endless places to invest your money, or are there only a few modeled funds to choose from? If there is a page on the OPM site that explains all the options and someone can post a link I can do my own research.

Thanks!

http://www.tsp.gov/
http://www.tsp.gov/rates/fundsheets.html

You should be able to answer your questions from those links.
 
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