Thrift Savings Plan,
the third pillar.
The TSP is a tax-advantaged retirement savings plan for federal employees — the federal government's equivalent of a 401(k). For FERS employees, it's one of three essential parts of retirement income and too important to leave on the table.
What the TSP
offers you.
The Thrift Savings Plan was established by Congress in the Federal Employees' Retirement System Act of 1986. It offers federal employees the same tax advantages as private-sector 401(k) plans — and for FERS employees, it's a critical pillar of retirement income.
The TSP is especially important for FERS employees because it is one of three components of retirement coverage. Without maximizing TSP contributions, FERS employees may struggle to maintain their standard of living in retirement.
CSRS employees do not receive government matching contributions to their TSP accounts — but they can still take advantage of the tax-deferred savings to supplement their CSRS retirement benefit. Uniformed service members and the Ready Reserve were extended participation under the National Defense Authorization Act.
Invest money in yourself and your future instead of giving the government an interest-free loan — contribute as much as you can.
Tax-deferred contributions
Traditional TSP contributions reduce your taxable income today. Taxes are paid when you withdraw in retirement.
5 core funds + L Funds
Choose from G, F, C, S, and I funds — or the lifecycle L Funds that automatically adjust allocation as you approach retirement.
Mutual fund window
Access a broader universe of mutual funds beyond the five core options for more tailored investment strategies.
Loan program
Borrow from your own TSP balance under certain conditions — residential and general purpose loans available.
In-service withdrawals
Access funds for financial hardship or after age 59½ while still employed — without leaving federal service.
Rollovers in & out
Transfer eligible retirement funds from IRAs, 401(k)s, and other plans into your TSP — or roll your TSP out at separation.
Project your TSP balance.
Enter your current balance, contribution rate, and expected growth to see how your TSP could grow between now and retirement.
Federal Retirement
TSP Annuity Calculator
Estimate what your monthly TSP annuity payment could look like based on your age, annuity amount, payout type, and selected features. This step-by-step calculator helps you explore your options and see a personalized estimate. Enter your information below to get started.
Complete the quick lead form to unlock your personalized TSP annuity estimate.
Step 1: Tell us where to send your results
2026 contribution limits
& catch-up rules.
You may elect to contribute any dollar amount or percentage of basic pay, up to the IRS annual limit. Your contributions can go to traditional (pre-tax) or Roth (after-tax) TSP, or a split between both.
| Contributor group | 2026 limit | Per pay period (26 periods) |
|---|---|---|
| Under age 50 | $24,500 | $942.31 / pay period |
| Age 50–59 (standard catch-up) | $32,500 | $942.31 + $307.69 catch-up |
| Age 60–63 (enhanced catch-up — SECURE 2.0) | $35,750 | $942.31 + $434.23 catch-up |
| Age 64+ (returns to standard catch-up) | $32,500 | $942.31 + $307.69 catch-up |
SECURE Act 2.0 — catch-up contribution changes
Beginning January 1, 2024, employees with wages below $145,000 in the preceding year may direct catch-up contributions to either traditional or Roth TSP. If wages exceed $145,000, all catch-up contributions must be treated as Roth.
The enhanced catch-up limit of $11,250 for ages 60–63 is in addition to the standard $24,500 elective deferral. This window is specifically ages 60, 61, 62, and 63 — it does not continue at 64+.
Tax issues & Roth rollover Q&A
Understanding how TSP withdrawals are taxed — and the implications of rolling funds to a Roth IRA — is one of the most important financial decisions at retirement.
Q: I want to roll partial TSP withdrawals into a Roth IRA. What are the tax consequences?
When you roll any pre-tax account (TSP traditional, traditional IRA, 401k) into an after-tax Roth IRA, taxes must be paid on the full rollover amount in the year of conversion. There is no way to avoid this tax event.
If you want to avoid immediate taxation, you can leave funds in the TSP (provided your balance exceeds the minimum threshold) or roll into a Traditional IRA. Keeping a minimum balance in TSP and holding in a pre-tax account also preserves the option to roll funds back into TSP later if needed.
Also consider: Administrative expenses of the new investment vehicle, age-based withdrawal rules (which differ between TSP and IRAs), and Required Minimum Distribution rules — which do not apply to Roth money in TSP under SECURE 2.0.
Maximizing your contributions
Contributing as much as possible to TSP is one of the most impactful financial decisions a federal employee can make — particularly FERS employees who rely on TSP as the third leg of their retirement.
At minimum, contribute enough to capture the full 5% agency match. Any contribution below 5% of basic pay is leaving tax-advantaged compensation on the table.
The agency match breakdown (FERS employees)
1% automatic: Your agency deposits 1% of basic pay automatically each pay period, regardless of whether you contribute anything.
Up to 3% matched dollar-for-dollar: For each dollar you contribute up to 3% of pay, the agency matches it.
Next 2% matched at 50 cents: For the 4th and 5th percent you contribute, the agency contributes 50 cents per dollar.
Contribute at least 5% to receive the full 5% match. Combined with the 1% automatic, this gives you a 6% agency contribution.
TSP tools
& further reading.
Official TSP publications, IRS guidance, withdrawal option guides, and planning tools for federal employees.