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The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and uniformed
Service members. It can provide you an additional source of retirement funds even if you don’t retire from the military.
Plan Overview
Description and Benefits
• Similar to a civilian 401(k) with
individual accounts
• Service members contribute via
voluntary payroll deductions
• Service member contributions and
associated earnings are always theirs
to keep
• Service member contributions can be
pretax (Traditional) or after-tax (Roth)
but are pretax by default
• Earnings and growth are tax-deferred
• Multiple investment options from
conservative to aggressive
• Administrative and investment fees are
very low compared to other retirement
plans
• Multiple withdrawal options are
available at retirement (typically age 59½)
• Beneciary receives balance at
participant’s death
Participation Rules
• All Service members are eligible to participate in the TSP
• Service members can contribute from basic pay, special
pay, and bonus pay up to a maximum annual
contribution amount ($20,500 in 2022* and $61,000
in 2022*, if in a tax-free combat zone. For BRS
participants receiving automatic and Service
contribution, all contributions cannot exceed
$61,000* in 2022).
*Subject to change annually
Traditional
Contributions
Pay
Transfers In
Transfers Out
Withdrawals
After Separation
Pretax
Taxes are deferred, so less money
is taken out of your paycheck.
Transfers allowed from eligible
employer plans and traditional IRAs.
Transfers allowed to eligible
employer plans, traditional IRAs
and Roth IRAs, after separation.
Taxable when withdrawn. A 10%
penalty may also apply if under age
59½ and certain criteria are not met.
Roth
After-tax
Taxes are paid up front, so more money comes
out of your paycheck.
Transfers allowed from Roth 401(k), Roth 403(b)
and Roth 457(b) accounts.
Transfers allowed to Roth 401(k), Roth 403(b),
Roth 457(b) and Roth IRA accounts, after
separation.
Contributions are tax-free when withdrawn.
Earnings are tax-free if withdrawn after 59½
and it has been ve years since January 1 of
the year you made your rst Roth contribution,
or you are permanently disabled or deceased.
A 10% penalty may also apply if under
age 59½ and certain criteria are not met.
Blended Retirement System
Unique Features
• Participants are automatically enrolled in TSP at
contribution level of 5% of base pay (can be changed)
• Participants are eligible for service-provided
automatic and matching contributions (all pretax,
Traditional)
• Service-provided automatic contributions vest
(become the property of the Service member) after
two years of service
Thrift Savings Plan — Page 1
Updated March 2022 — Marines
THRIFT SAVINGS PLAN
Source: tsp.gov/funds-individual and tsp.gov/funds-lifecycle
* Each of the L Funds is invested in the individual TSP funds (G, F, C, S, and I). The proportion of your L Fund balance invested in each
of the individual TSP funds depends on the L Fund you choose.
** Income from interest and dividends is included in the share price calculation. It is not paid directly to participants’ accounts.
*** Net expenses are offset by the forfeitures of Agency/Service Automatic (1%) contributions of FERS and BRS participants who leave
Federal Service before they are vested, other forfeitures, and loan fees.
Description of
Investments
Objective of Fund
Risk
Volatility
Types of Earnings**
Total Expenses as
of 12/31/2021***
Inception Date
G Fund
Government
securities
(specially
issued to
the TSP)
Interest income
without risk of
loss of principal
Ination risk
Low
Interest
0.043%
04/01/87
F Fund
Government,
corporate,
and mortgage-
backed bonds
Match the
performance
of the
Bloomberg
Barclays
U.S. Aggregate
Bond Index
Market risk,
credit risk,
prepayment
risk, ination
risk
Low to
moderate
Change in
market prices
Interest
0.058%
01/29/88
C Fund
Stocks of
large and
medium-sized
U.S. companies
Match the
performance
of the Standard
& Poor’s 500
(S&P 500)
Index
Market risk,
ination risk
Moderate
Change in
market prices
Dividends
0.052%
01/29/88
S Fund
Stocks of
small to
medium-sized
U.S. companies
(not included in
the C Fund)
Match the
performance
of the
Dow Jones
U.S. Completion
Total Stock
Market Index
Market risk,
ination risk
Moderate to
high —
historically
more volatile
than C Fund
Change in
market prices
Dividends
0.059%
05/01/01
I Fund
International
stocks of
more than
20 developed
countries
Match the
performance
of the MSCI
EAFE (Europe,
Australasia,
Far East)
Index
Market risk,
currency risk,
ination risk
Moderate
to high —
historically
more volatile
than C Fund
Change in
market prices
Change in
relative value
of currency
Dividends
0.053%
05/01/01
L Funds*
Invested in the
G, F, C, S, and I
Funds
To provide
professionally
diversied
portfolios based
on various time
horizons, using
the G, F, C, S,
and I Funds
Exposed to all of
the types of risk
to which
the individual
TSP funds are
exposed but
total risk is
reduced through
diversication
among the ve
individual funds
Asset
allocation shifts
as time horizon
approaches to
reduce volatility
Composite of
earnings in
the underlying
funds
0.045% - 0.049%
08/01/05
Investment Options
Thrift Savings Plan — Page 2
Updated March 2022 — Marines
THRIFT SAVINGS PLAN
Loans
Under certain circumstances, you can borrow from your TSP account. Check https://www.tsp.gov for details.
TSP Resources
• TSP website: https://www.tsp.gov
• TSP Thriftline: 1-TSP-YOU-FRST (1-877-968-3778)
• YouTube: TSP4gov
• Twitter: @tsp4gov
• Defense Finance and Accounting Service (DFAS): https://www.dfas.mil - search “TSP”.
Glossary of TSP Terms
• After-tax Contributions — Contributions made from Service member pay that has already been taxed (i.e. Roth).
• Asset Allocation — The strategy of dividing investments among multiple asset classes such as stocks, bonds, cash and
subcategories of each in an attempt to control risk by diversifying one’s holdings.
• Automatic Contributions — Contributions made by each branch of service to the TSP accounts of Service
members covered under the Blended Retirement System. Contributions begin after 60 days of service and equal 1%
of the Service member’s basic pay each pay period. See “vesting” for additional, related information.
• Automatic Enrollment — Automatic participation in the TSP by Service members covered under the Blended
Retirement System through which 5% of their basic pay is contributed to their TSP account each pay period.
• Beneficiary — The individual(s) or entity(ies) that receive your TSP account balance (or a portion of it) at your death.
• Bond — A debt security issued by a government entity or corporation to an investor from whom it borrows money.
• Catch-up Contributions — Contributions by participants in excess of the basic annual deferral limit which are available
only to those 50 or older. The IRS sets the limit on these contributions annually.
• Contribution — A deposit made to the TSP by a participant through payroll deduction or on behalf of the participant by
his or her branch of service.
• Currency Risk — The risk that the value of a currency will rise or fall relative to the value of other currencies.
• Index — A hypothetical investment portfolio that represents an investment market or a segment of it.
• Inflation Risk — The risk that ination will reduce the future purchasing power of an investment.
• Market Risk — The risk of a nancial loss caused by declines in investment markets.
• Matching Contributions — Branch of service contributions, up to a certain limit, made to TSP accounts of participants
who have also contributed their own money.
• Prepayment Risk — The risk that bonds will be paid back early as a result of falling interest rates, thus forcing investors
to reinvest at lower rates.
• Pretax Contributions — Contributions of pay that have not yet been taxed. All employee contributions to a TSP Traditional
account are made pretax.
• Securities — Investments that can be bought and sold through various markets.
• Stocks — Equity securities issued as ownership in a publicly held corporation.
• Vesting — The time in service a TSP participant must have in order to keep automatic contributions and earnings.
Thrift Savings Plan — Page 3
Updated March 2022 — Marines
0322-0010-Marines
THRIFT SAVINGS PLAN