MacSteve
12-03-2009, 03:19 PM
As Per Request here is a thread all about TSP aka Thrift Savings Plan.
The TSP is a retirement savings plan for civilians who are employed by the United States Government and members of the uniformed services. The Federal Retirement Thrift Investment Board, administers the Thrift Savings Plan (TSP)
http://www.tsp.gov/
Basicaly TSP is a retirement plan offered by the federal gov't to employees and members of the Uniformed services (military). In bootcamp, you will have the option to enroll in TSP. DO IT
WHEN enrolled in TSP you will have the option to choose a certain Percentage of your monthly income to deposit into your account. The average for low ranking enlisted seems to be 2-5%, and for e4 and above 10-25%.
When you contribute to TSP, there are several "accounts" to invest in. high risk to low risk. High risk, obviously are more prone to dropping during decrease in economy, but gain the fastest.. visa versa.
so now that the basics are covered, heres a FAQs section that I will post up. if you have any more questions that aren't listed, please ask them. I will gladly add your post to this first one, and answer it; increasing the FAQ.
--------------------------------------------------------------------------------------
When can I contribute to the TSP?
You can contribute to the TSP at any time. Your contributions will begin no later than the first full pay period after your agency accepts your election
How do I start my contributions to my TSP account?
If by some reason you opt to not enroll in TSP in bootcamp, you may start it up at any time. To start contributing to the TSP, ask your personnel office for the TSP Election Form (TSP-1), download the form from this Web site, or use your agency's electronic version if one is available. Complete the form to show whether you want to contribute a percentage of your basic pay or a fixed whole dollar amount each pay period.
Your agency will deduct the amount you choose from your pay each pay period and will continue to do so until you submit another election to stop or change the amount.
What if I transfer to another agency?
If you transfer to another agency, your new agency should continue your contributions and loan payments, if any, without interruption. To avoid any delay, you should notify your new personnel office that you have been contributing to the TSP; you should also notify them if you have a loan.
How do I change the amount of my contributions?
If you want to change the amount of your TSP employee contributions, submit Form TSP-1 to your agency (or use your agency's electronic version, if your agency has one). THE NAVY DOES
What is a contribution allocation?
A contribution allocation specifies the way contributions to your account will be invested among the TSP funds. The contribution allocation applies to all future contributions, as well as loan payments and transfers (or rollovers) of funds from other plans into the TSP. It does not affect the money already in your account. (To change the way your existing account balance is invested, you must make an interfund transfer.)
How do I make a contribution allocation?
To specify the way you want your contributions to be invested, use this Web site or the ThriftLine, or submit Form TSP-50, Investment Allocation, to the TSP. (Do not submit Form TSP-50 to your agency.) If you have not previously invested in the F, C, S, I, or L Funds, you must acknowledge the risk of investing in these funds before you can proceed with your contribution allocation. To request a contribution allocation, follow the instructions and enter the percentages you want invested in each fund each pay period. Percentages must be stated in one percent increments and must add up to 100 percent. Whether you are using the Web site or the ThriftLine, be sure to follow the instructions to confirm the percentages or your allocation will not be effective.
The Web site and the ThriftLine are the most efficient ways of making a contribution allocation. Contribution allocations generally will become effective within 2 business days of the date the TSP receives your request.
What if I do not make a contribution allocation?
All contributions, including your agency contributions if you are FERS, will be invested in the G Fund until you make a contribution allocation on this Web site or the ThriftLine or submit Form TSP-50 to the TSP.
How do I designate beneficiaries for my TSP account?
To designate beneficiaries to receive your account in the event of your death, download Form TSP-3, Designation of Beneficiary, from this Web site, or ask your personnel office for it. If you have left Federal service, you can also obtain the form from the TSP. If you do not file Form TSP-3 with the TSP record keeper to designate beneficiaries for your account, your account will be distributed after your death according to the order of precedence required by law.
Once again, any questions not answered feel free to ask and I will add them to this FAQ with appropriate Answers.
Steve
EDIT: Link directly to the TSP home page provided by DK3
http://www.tsp.gov/uniserv/features/index.html
EDIT: FAQ submitted by NickhallNavy
you can take a loan out of your TSP after a while, after a $50 fee, every cent of the interest (3%) goes back into your account. so you pay yourself to take a loan! i just did that and paid off 3 credit cards. it's a great way to get out of debt, and pay yourself!
EDIT ANSWERED BY DK3:so its basically a 401k right? the gov sets it up for you but do they match like some companies do?
Who is entitled to receive matching contributions?
Under the law that extended the TSP to the uniformed services, the secretary responsible for each service may designate critical specialties for matching contributions. Members serving in those specialties who agree to serve on active duty for 6 years may be eligible for matching contributions during the 6-year active duty obligation.
The matching contributions apply only to amounts contributed from basic pay and not from any incentive pay or special pay. If you do not contribute basic pay to the TSP, you will not be eligible to receive matching contributions. Matching contributions apply to the first 5 percent of pay that you contribute each pay period. Your contributions are matched dollar-for-dollar on the first 3 percent of pay you contribute each pay period and 50 cents on the dollar for the next 2 percent of pay.
As of the date of this Web edition, matching contributions had not been authorized by any of the uniformed services. Your service will notify you if you are eligible to receive matching contributions
The TSP is a retirement savings plan for civilians who are employed by the United States Government and members of the uniformed services. The Federal Retirement Thrift Investment Board, administers the Thrift Savings Plan (TSP)
http://www.tsp.gov/
Basicaly TSP is a retirement plan offered by the federal gov't to employees and members of the Uniformed services (military). In bootcamp, you will have the option to enroll in TSP. DO IT
WHEN enrolled in TSP you will have the option to choose a certain Percentage of your monthly income to deposit into your account. The average for low ranking enlisted seems to be 2-5%, and for e4 and above 10-25%.
When you contribute to TSP, there are several "accounts" to invest in. high risk to low risk. High risk, obviously are more prone to dropping during decrease in economy, but gain the fastest.. visa versa.
so now that the basics are covered, heres a FAQs section that I will post up. if you have any more questions that aren't listed, please ask them. I will gladly add your post to this first one, and answer it; increasing the FAQ.
--------------------------------------------------------------------------------------
When can I contribute to the TSP?
You can contribute to the TSP at any time. Your contributions will begin no later than the first full pay period after your agency accepts your election
How do I start my contributions to my TSP account?
If by some reason you opt to not enroll in TSP in bootcamp, you may start it up at any time. To start contributing to the TSP, ask your personnel office for the TSP Election Form (TSP-1), download the form from this Web site, or use your agency's electronic version if one is available. Complete the form to show whether you want to contribute a percentage of your basic pay or a fixed whole dollar amount each pay period.
Your agency will deduct the amount you choose from your pay each pay period and will continue to do so until you submit another election to stop or change the amount.
What if I transfer to another agency?
If you transfer to another agency, your new agency should continue your contributions and loan payments, if any, without interruption. To avoid any delay, you should notify your new personnel office that you have been contributing to the TSP; you should also notify them if you have a loan.
How do I change the amount of my contributions?
If you want to change the amount of your TSP employee contributions, submit Form TSP-1 to your agency (or use your agency's electronic version, if your agency has one). THE NAVY DOES
What is a contribution allocation?
A contribution allocation specifies the way contributions to your account will be invested among the TSP funds. The contribution allocation applies to all future contributions, as well as loan payments and transfers (or rollovers) of funds from other plans into the TSP. It does not affect the money already in your account. (To change the way your existing account balance is invested, you must make an interfund transfer.)
How do I make a contribution allocation?
To specify the way you want your contributions to be invested, use this Web site or the ThriftLine, or submit Form TSP-50, Investment Allocation, to the TSP. (Do not submit Form TSP-50 to your agency.) If you have not previously invested in the F, C, S, I, or L Funds, you must acknowledge the risk of investing in these funds before you can proceed with your contribution allocation. To request a contribution allocation, follow the instructions and enter the percentages you want invested in each fund each pay period. Percentages must be stated in one percent increments and must add up to 100 percent. Whether you are using the Web site or the ThriftLine, be sure to follow the instructions to confirm the percentages or your allocation will not be effective.
The Web site and the ThriftLine are the most efficient ways of making a contribution allocation. Contribution allocations generally will become effective within 2 business days of the date the TSP receives your request.
What if I do not make a contribution allocation?
All contributions, including your agency contributions if you are FERS, will be invested in the G Fund until you make a contribution allocation on this Web site or the ThriftLine or submit Form TSP-50 to the TSP.
How do I designate beneficiaries for my TSP account?
To designate beneficiaries to receive your account in the event of your death, download Form TSP-3, Designation of Beneficiary, from this Web site, or ask your personnel office for it. If you have left Federal service, you can also obtain the form from the TSP. If you do not file Form TSP-3 with the TSP record keeper to designate beneficiaries for your account, your account will be distributed after your death according to the order of precedence required by law.
Once again, any questions not answered feel free to ask and I will add them to this FAQ with appropriate Answers.
Steve
EDIT: Link directly to the TSP home page provided by DK3
http://www.tsp.gov/uniserv/features/index.html
EDIT: FAQ submitted by NickhallNavy
you can take a loan out of your TSP after a while, after a $50 fee, every cent of the interest (3%) goes back into your account. so you pay yourself to take a loan! i just did that and paid off 3 credit cards. it's a great way to get out of debt, and pay yourself!
EDIT ANSWERED BY DK3:so its basically a 401k right? the gov sets it up for you but do they match like some companies do?
Who is entitled to receive matching contributions?
Under the law that extended the TSP to the uniformed services, the secretary responsible for each service may designate critical specialties for matching contributions. Members serving in those specialties who agree to serve on active duty for 6 years may be eligible for matching contributions during the 6-year active duty obligation.
The matching contributions apply only to amounts contributed from basic pay and not from any incentive pay or special pay. If you do not contribute basic pay to the TSP, you will not be eligible to receive matching contributions. Matching contributions apply to the first 5 percent of pay that you contribute each pay period. Your contributions are matched dollar-for-dollar on the first 3 percent of pay you contribute each pay period and 50 cents on the dollar for the next 2 percent of pay.
As of the date of this Web edition, matching contributions had not been authorized by any of the uniformed services. Your service will notify you if you are eligible to receive matching contributions