Approaching the 2-year anniversary of the TSP mutual fund window, it is a good time to review if federal employees should reconsider “opening” their investment window. The Thrift Savings Plan offers a variety of investment options, including G, F, C, S, and I funds, as well as lifecycle funds. However, it is important to be mindful of the opportunity costs of this conservative investing option. While the TSP is known for its low costs, there are often more pros than cons to doing rollovers to IRAs, according to financial professionals.
In order to maximize every bit of your Thrift Savings Plan, it is essential to understand the essentials of TSP loans. Our in-depth guide covers how to borrow from your TSP, the impact on your retirement savings, and provides tips for managing TSP loans effectively. The Thrift Savings Plan is a defined contribution plan for United States civil service employees and retirees, as well as for members of the uniformed services.
Congress is currently eyeing TSP investment choices, with bills remaining under consideration on Capitol Hill. Some of these bills focus on China, ESG (Environmental, Social, and Governance), and DEI (Diversity, Equity, and Inclusion) issues. When most current federal employees retire from government service, they will have three or more sources of retirement income, including the TSP.