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Max out your Thrift Savings Plan (TSP) Account

Similar to a 401(k) plan, the TSP permits you to make pre-tax contributions every time you get paid. You decide how much to allocate to your TSP, up to a certain limit. The TSP allocation is taken out of your gross pay, and your paycheck is reduced by that amount. The allocated amount goes directly into your TSP account, which you can invest in various funds. In 2015, FERS and CSRS employees can contribute up to $18,000 of their basic pay to the TSP. Be aware that President Bush signed legislation (P.L. 107-304) on November...

Senate Ends Tax Penalty for Retired Federal Officers

Federal law enforcement officers and firefighters will soon be able to withdraw funds from their Thrift Savings Plan (TSP) after the age of 50 without a tax penalty. The legislation cutting the penalty was passed unanimously by the Senate June 4. The House passed a similar version of the legislation last month, but must now take up the Senate's amended version of the bill. Under current law, federal law enforcement officers are eligible to retire after 20 years of service at age 50 and must retire in many cases...

Federal Employee Thrift Savings Plan

The Thrift Savings Plan is a retirement and savings investment plan for federal employees. Congress established the TSP in 1986 for the purpose of providing federal employees with retirement income. The TSP offers federal employees the same type of savings and tax benefits that many private corporations offer their employees under so-called “401(k)” plans. You can participate in the TSP if you are covered by the Federal Employees’ Retirement System (FERS), the Civil Service Retirement System (CSRS), or an equivalent...

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