The Thrift Savings Plan (TSP) is a retirement savings plan for civilians employed by the Federal government.  Its primary purpose is to provide supplemental retirement income to retirees, in addition to the annuities they receive under FERS or CSRS.

Contributions to TSP are one way in which DoD employees may supplement their annuities to provide the level of retirement income actually needed.  Perhaps the best way to think of TSP is as a multifaceted savings account.  It provides the same type of savings and tax benefits that private sector employees receive from company 401k plans.

Like a 401k plan, TSP offers tax-deferred savings.  You won't have to pay taxes on your TSP contributions until a withdrawal is made.  Also, similar to a 401k, your agency may match up to 5 percent of your contributions.

One thing to keep in mind is that it is up to you to ensure that that you have sufficient retirement income.  To learn more about ways to save with TSP and the available annuity options,  visit: