Thrift Savings Plan

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, if you are eligible to receive agency contributions) put into your account during your working years and the earnings accumulated over that time.

Contributions – FERS

Up to $16,500 (no percentage limit) for 2009 (inflation adjusted thereafter) $5,500 catch up provisions for Employees age 50 and over.

FERS Contribution: Government Contribution:
0% 1%
1% 2%
2% 3%
3% 4%
4% 4.5%
5% 5%
  • Own contributing vested immediately.
  • Government 1% vested after 3 years, matching vested immediately.

Contributions – CSRS

  • Up to $16,500 (no percentage limit) for 2009 (inflation adjusted thereafter).
  • $5,500 catch up provisions for Employees age 50 and over No Government matching for CSRS.

CSRS & FERS

  • In-Service Age-based withdrawal.
  • Employee may withdraw one time, all or part of their TSP while working for the government at age 59 1/2 or older with no interruption while continuing to contribute.