Quick Decision
You would like a tax break on your savings
The Thrift Savings Plan is an important part of the total FERS retirement package.
It gives you a way to save extra money for the future and get a tax break today.
When you join FERS, your agency sets up a Thrift Savings Plan account in your name. Every pay period, your agency
automatically puts in an amount equal to 1% of your basic pay. This money is called your Agency Automatic (1%)
Contribution. It is not a deduction from your basic pay. It is an amount your agency contributes for you based on your basic
pay per pay period.
In addition, you can contribute up to 10% of your basic pay per pay period to your Thrift Savings Plan account. If you
contribute to your Thrift Savings Plan account, you will also receive Agency Matching Contributions as follows:
- The first 3% you save each pay period will be matched dollar for dollar, and
- The next 2% you save each pay period will be matched 50 cents on the dollar.
Your own contributions and your Agency Matching Contributions as well as the earnings attributed to these contributions
belong to you right away. There is no waiting (vesting) period. You are vested in the Agency Automatic (1%) Contributions
and attributable earnings after you have completed 3 years of Federal (generally, civilian) service (2 years for some
non-career participants).
As a CSRS employee you may participate in the Thrift Savings Plan. The Plan allows you to contribute up
to 5% of your basic pay per pay period on a before tax basis to your Thrift Savings Plan account. However, CSRS
employees do not receive Agency Matching or Automatic (1%) Contributions.
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