All employees of the US Government are eligible to participate in the Thrift Savings Plan (TSP). This was established by Congress in the Federal Employees Retirement System Act of 1986. It offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans.
The TSP Is a defined contribution plan, the retirement money you receive from the account will be dependent on how much contributions you contribute to your account during the years in which you are working, and the earnings accumulated over that time.
This is one of the best retirement plans in the world as I have learned. The TSP has a selection of individual and lice cycle funds that offer market diversification. You choose what you want to invest your retirement dollars into.
My husband participates in ROTH TSP and they deduct 1% of his check. Now that I have researched this I will let him know that we should definitely increase his deduction as soon as possible.
I'm not sure if all military participate willingly or if it's set up for you automatically. I do think that you should check into this because you might be able to increase your monthly contribution if your able to afford it. I know some people can't contribute a lot due to other financial obligations that they currently have.
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