By LTC Robert CainJune 23, 2009
Thrift Savings Plan
What is it'
The Thrift Savings Plan (TSP) is a long-term, financial personal investment program intended to improve the well-being of the troops, as well as their quality of life. The Thrift Savings Plan (TSP) is a government-sponsored savings and investment program that offers tax-deferred opportunities similar to the civilian sector's 401 (k) plan. Servicemembers and federal civilians have the opportunity to participate in TSP at any time.
How important is this to the Army'
The Army is urging members of the active-duty, Reserve and National Guard to earn money for their futures. You can contribute any percentage from your basic, incentive, special or bonus pay. If you contribute while in a combat zone, you can avoid paying taxes on the contributions. You will only pay taxes on the earnings upon withdrawal. This program is similar to the civilian world's 401K retirement savings program. You can take your money with you when you leave the service, or leave it in until retirement, or keep it in your TSP account long after you leave the military.
What is the Army doing'
The Army encourages investment in TSP. On June 24, in the Pentagon auditorium, the Federal Retirement Thrift Investment Board will have experts on hand to answer any questions about the TSP. This is beneficial to those who want to know more before deciding to contribute and for those already in the TSP it will provide more information on the features of your TSP account. This seminar is from 11:30 a.m. to 4:30 p.m. and is covered in two parts.
Part I, from 11:30 a.m. until 1:30 p.m., will focus on understanding how to get the most out of contributing to the TSP. Part II, from 1:45 to 4:30 p.m. will cover using your TSP account, either while still active or upon separation or retirement. Military and federal civilians are invited to attend one or both sessions. This is your opportunity to learn about this important savings program from the federal agency responsible for administering the TSP.
TSP Web site
A copy of the briefing is available for viewing and download at the: Military Saves Web site