2025 – TSP Insights

Tools and Resources by TSP Insight Author 4 days ago

An Overview of the TSP Lifecycle Funds

The Thrift Savings Plan (TSP) Lifecycle Funds, or L Funds, are designed to simplify retirement investing by automatically allocating contributions across the TSP’s five core funds: G, F, C, S, and I funds. These allocations are adjusted quarterly to balance risk and…

Financial Planning by TSP Insight Author November 11, 2025

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How Much Should You Have Saved in Your TSP by Age 50?

Planning for a federal retirement brings unique challenges, especially when most retirement advice targets private-sector employees without pensions like the FERS annuity. Federal employees have different benchmarks for savings, making it important to focus on guidelines tailored to your needs. By Age…

Investment Strategies by TSP Insight Author November 4, 2025

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Is the Roth TSP Right for You?

Federal employees have had the option to make after-tax contributions to the Roth Thrift Savings Plan (TSP) since spring 2012. This account offers the advantage of tax-free withdrawals in retirement, on top of the agency match. However, despite its potential benefits, the…

Financial Planning by TSP Insight Author October 28, 2025

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The Pros and Cons of Using Your TSP For College Tuition

If you haven’t been contributing to a 529 or pre-paid tuition plan for your child’s college tuition, you may be tempted to dip into your TSP to fund their education. Considering the high interest rate climate we find ourselves in, many parents…

Federal Benefits by TSP Insight Author October 21, 2025

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The Pros & Cons Of The Roth Thrift Savings Plan (TSP)

In 2012, the Thrift Savings Plan (TSP) introduced the Roth TSP option, allowing federal employees to invest after-tax income and enjoy tax-free withdrawals in retirement. If you’re wondering whether the Roth TSP is a good fit for your financial future, here’s a…

Retirement Planning by TSP Insight Author October 14, 2025

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The Rule Of 55

If circumstances require you to take an in-service withdrawal from your Thrift Savings Plan (TSP) before you hit 59½, you’re subject to an IRS 10% penalty. This is in addition to the regular income taxes you’ll owe on the tax-deferred portion of…

Investment Strategies by TSP Insight Author October 7, 2025

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Rolling Funds From A 401(k) Into Your TSP Account

Thrift Savings Plan (TSP) participants who have eligible retirement plans like a 401(k), 403(b), or a traditional IRA can roll the money from those funds into their TSP account. You have the flexibility to make this move while you’re still working or…

Financial Planning by TSP Insight Author September 30, 2025

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How a TSP Roth Conversion Impacts Your Taxes

Beginning January 1, 2026, federal employees will have the option to perform in-plan TSP Roth conversions. This means you can transfer money directly from your Traditional TSP into a Roth TSP. If you don’t already have a Roth account, your first conversion…

Financial Planning by TSP Insight Author September 23, 2025

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Penalty-Free TSP Monthly Payments

Federal employees who exit service before age 55 can opt for monthly withdrawals from their traditional Thrift Savings Plan (TSP) based on their life expectancy. When executed correctly, these monthly payments avoid the 10% early withdrawal penalty, though they remain fully taxable.…

Financial Planning by TSP Insight Author September 16, 2025

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Drawbacks of the TSP vs IRA

The Thrift Savings Plan (TSP) was established by Congress in the Federal Employees Retirement System Act of 1986. Known for its low fees and simplicity, it’s one of the largest retirement plans in the world. There is currently around $985 billion invested…

Yearly Archives: 2025