1. What is the TSP Calculator for Federal Employees?

The TSP (Thrift Savings Plan) Calculator helps federal employees estimate their retirement savings balance based on their salary, contribution percentage, and government matching funds.

2. How Does the Calculator Work?

The calculator uses the TSP balance equation:

Where:

• \( Salary \) — Annual salary in USD
• \( \%\ Contrib \) — Percentage of salary contributed to TSP
• \( Gov\ Match \) — Government matching contribution in USD

Explanation: The equation calculates the total annual TSP contribution including both employee contributions and government matching funds.

3. Importance of TSP Calculation

Details: Accurate TSP projections help federal employees plan for retirement, optimize contributions, and maximize government matching benefits.

4. Using the Calculator

Tips: Enter your annual salary in USD, contribution percentage (typically 5-15%), and expected government match. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the maximum TSP contribution limit?
A: For 2023, the elective deferral limit is $22,500 ($30,000 if age 50 or older).

Q2: How does government matching work?
A: FERS employees receive 1% automatic contribution plus matching up to 4% of salary (for a total of 5% with maximum employee contribution).

Q3: Should I contribute more than 5%?
A: Contributing at least 5% maximizes government matching. Higher contributions increase retirement savings but reduce take-home pay.

Q4: Are TSP contributions tax-deferred?
A: Traditional TSP contributions are pre-tax. Roth TSP contributions are after-tax but grow tax-free.

Q5: How often should I adjust my TSP contributions?
A: Review contributions annually or when your salary changes significantly to ensure you're maximizing benefits.