What is the Thrift Savings Plan (TSP)
The Thrift Savings Plan (TSP) is a special tax deferred retirement savings plan. That is, you pay no Federal taxes on your contributions or your earnings until you withdraw them from your account. In some areas, state income tax is also deferred until withdrawal.
While participation is optional, TSP is a critical and essential part of the FERS retirement plan that can provide a substantial portion of your retirement income. It’s also a great supplement to the CSRS retirement system.
Eligibility
All Federal employees covered under the following plans are eligible to contribute to the TSP:
- Federal Employees’ Retirement System (FERS),
- Civil Service Retirement System (CSRS)
- and CSRS-Offset
PHS Commissioned Officers are also eligible, but must make changes by contacting the Division of Commissioned Personnel. Please read the DCP publication 2006 Thrift Savings Plan (TSP) for the Uniformed Services (.pdf) for further information.
