Thrift savings plan is of retirement plan that can be controlled by you. You can definitely work together to increase your pension but TSP is something that you will not have to contribute as well. TSP is one of the best retirement Savings and investment plans that has been created specifically for the federal employees and it has a number of benefits so that you can keep your money after you retire.
How is TSP a part of the retirement package?
If you have been covered by the federal employee retirement system then TSP is is one of the basic parts of the three part retirement package. It includes the basic and duty as well as a social security of the FERS and if you have been covered by the Civil Service retirement system then obviously TSP is one of the best supplements to your CSRS annuity. The best point about this system is that doing investments in TSP is incredibly easy. TSP has been created out of live core funds that you can choose and invest in. If you are unsure about the kind of funds that you need to choose you can definitely invest in the life cycle fund That has been specifically designed by professionals. It is designed according to the kind of whole sheets you have and based on when you would need the money.
If you are a career in why then you will be able to enroll or change the TSP at any point of time. Currently there are no open season for TSP.
If you have been hired after July 31st 2010 and you are a girl or 10 boy then you will be automatically entitled to the TSP, and you will notice that 3% of the basic salary is being deducted from the paycheck which gets deposited to the traditional balance of the account. If you want, you can always choose to stop the deduction anytime you want.
How to change or get yourself enrolled in TSP?
If you want TSP traditional and Roth contributions it will be convenient for you to do it at employee kiosk also through the online platform of liteblue usps.
You can also get the enrolment done at postal self service by toll free number. You can also visit the official website of TSP.
The best part is that you will be able to give your money in the TSP account as long as you like and you do not have to make any kind of withdrawal until you are at least seventy years of age. After your of 70 years it will automatically send you the required minimum distribution as per the guidelines, until you are separated from the Postal service. Thinking about the early withdrawal penalty tax it will not be applicable if you are separated and at least of the age of 55. After the eligibility criteria has been matched there will be a 10% early withdrawal penalty tax.
As long as you have money in the account it will continue to grow based on the and investment selections that you have made so that you will be able to take it out after your retirement has been done. If you have been covered by AP RS and you are giving 5% of your basic pay to the TSP plan then the Postal service will be giving an extra 5% with the help of agents automatic and matching contributions. Therefore we will be able to get double the money that you are actually contributing and therefore you will be having a comfortable retirement as well.