5 Things to know about the Thrift Savings Plan (TSP)

May 10

Government employees have access to a unique retirement plan – the Thrift Savings Plan (TSP). In many ways it functions similar to 401(k) and 403(b) accounts in terms of contribution limits and receiving employer matches. Let’s look at the features:

1. Low-costs – The TSP offers very low-cost funds which are beneficial for investors.

2. Simple investment options – The TSP has 5 individual funds in addition to target retirement portfolios. This can keep it simple for many participants, but also means there is less flexibility and fewer options for diversification.

3. Roth options – Contributions can be made to a Roth TSP, but no Roth rollovers into the plan or conversions of TSP funds to Roth TSP funds can occur.

4. Qualified Charitable Distributions – The TSP does not allow these direct contributions to charities from retirement accounts starting at age 70.5.

5. Distribution flexibility – The TSP does have limits on the frequency of ad-hoc distributions – typically one per 30 calendar days.

These features and limitations will impact everyone’s situation differently. We are always happy to talk to clients about how their TSP fits into their overall financial plans while still working or in retirement. Reach out today to set up a consultation.

Justin McCurdy, CFP

Hello, I’m Justin and I am excited to be part of the Bridge Financial Planning team!

While studying at the University of Notre Dame I developed a passion for solving complex challenges. Upon graduating, I started my career in financial planning and quickly became enthusiastic about the detailed analytical skills involved, paired with the personal connections developed while serving clients. I became a CFP® professional to increase my knowledge, enabling me to better serve our clients.

I view each person’s financial life as a unique challenge on which I am privileged to advise on potential solutions. I provide unbiased financial advice that gives clarity and confidence to each client as they progress towards their unique goals. I look forward to meeting with you and partnering with you on your financial plans.

On a personal note, my wife Heather and I live in Northwest Indiana (about an hour from Chicago). Heather and I are blessed to be parents of young triplets – 2 sons and 1 daughter. When not spending time with my family, I enjoy spending time in the kitchen – baking, cooking, and making ice cream. In my local community, I volunteer with Meals on Wheels.

*Justin is accepting new clients. Schedule an Initial Consultation, Client Review or Check-In Call with Justin now.

https://go.oncehub.com/BridgeFinancialPlanning-JMcCurdy

5 Things to know about the Thrift Savings Plan (TSP)

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