1. What is TSP Contribution?

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services. Contributions consist of employee salary deductions and potential employer matching funds.

2. How Does the Calculator Work?

The calculator uses the TSP contribution formula:

Where:

• \( Salary \) — Annual salary in USD
• \( \% \) — Percentage of salary contributed (0-100%)
• \( Employer\ Match \) — Fixed amount contributed by employer

Explanation: The equation calculates the total annual contribution by combining employee contributions (percentage of salary) with employer matching funds.

3. Importance of TSP Contribution

Details: Understanding your total TSP contribution helps with retirement planning, maximizing employer matches, and ensuring you're taking full advantage of this retirement benefit.

4. Using the Calculator

Tips: Enter your annual salary in USD, your contribution percentage (typically between 5-15%), and any employer match amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the maximum TSP contribution limit?
A: For 2023, the elective deferral limit is $22,500 ($30,000 if age 50 or older). This doesn't include agency matching.

Q2: How much should I contribute to TSP?
A: At minimum, contribute enough to get full employer matching (typically 5% of salary). Ideally, aim for 10-15% or more of your salary.

Q3: When do employer matches get contributed?
A: Employer contributions are made each pay period based on your contributions during that period.

Q4: Are there different types of TSP contributions?
A: Yes, you can make traditional (pre-tax) or Roth (after-tax) contributions, or a combination of both.

Q5: Can I change my contribution percentage?
A: Yes, you can change your contribution amount at any time through your agency's payroll system.