1. What is TSP?

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services. It offers similar tax benefits to a 401(k) plan.

2. How Does the Calculator Work?

The calculator uses the future value formula for compound interest with regular contributions:

Where:

• \( FV \) — Future value of the investment
• \( P \) — Initial balance
• \( PMT \) — Monthly contribution amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of periods (months)

3. Importance of TSP Planning

Details: Proper TSP planning helps federal employees maximize their retirement savings through strategic contributions and investment choices.

4. Using the Calculator

Tips: Enter your current TSP balance, monthly contribution amount, years until retirement, and expected annual return rate.

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: What are the TSP fund options?
A: The TSP offers several funds including G, F, C, S, I, and Lifecycle (L) funds.

Q3: How often should I adjust my TSP contributions?
A: Review your contributions annually or whenever your financial situation changes significantly.

Q4: What is a realistic return rate expectation?
A: Historically, the C Fund (S&P 500) has averaged about 7-10% annually, but past performance doesn't guarantee future results.

Q5: When can I withdraw from my TSP?
A: Generally at age 59½ without penalty, but there are exceptions for financial hardship or separation from service.