The Thrift Savings Plan has reached a significant milestone. According to the Federal Retirement Thrift Investment Board’s January 2026 Participant Activity Report, total TSP assets climbed to $1.073 trillion as of December 2025. This reflects decades of steady contributions from millions of federal employees and service members.
Here’s what the latest data reveals.
FERS Participation and Account Balances
There are now more than 4.1 million FERS participants in the TSP, with an average account balance of $217,291. Participation remains remarkably strong, with 95.6% of FERS employees contributing at least 5% of their salary. This allows them to receive the full government match.
Roth TSP Usage Still Developing
While overall participation in the TSP is high, Roth adoption continues to lag. About 1.2 million FERS participants, or roughly one-third, currently have a Roth TSP account. The average Roth balance is $38,718. This reflects the fact that many federal employees only began using the Roth option later in their careers.
Across all TSP participants, nearly 3 million have some Roth savings. However, the relatively modest average balances suggest that for many, Roth contributions are still a newer addition rather than a primary strategy.
Withdrawals Outpacing Contributions
One trend worth noting is that more money is leaving the TSP than entering it. In 2025, participants contributed $55.32 billion, while withdrawals totaled $74.33 billion. This resulted in a net outflow of approximately $19 billion.
This shift likely reflects a broader demographic trend, as increasing numbers of federal employees from the baby boomer generation move into retirement and begin drawing down their accounts.
Key Changes Taking Effect in 2026
New rules under the SECURE 2.0 Act are beginning to impact TSP participants. As of January 1, 2026, federal employees earning over $150,000 who make catch-up contributions must now direct those contributions into Roth accounts.
In addition, the TSP now allows for in-plan Roth conversions. This gives participants the ability to convert existing traditional balances into Roth funds. It also creates new opportunities for tax planning, particularly for those who expect to be in a higher tax bracket later in life.
What It Means for You
While these numbers highlight broad trends, each federal employee’s situation is unique. Understanding how your TSP strategy fits into your overall retirement plan is key.
A Federal Retirement Consultant (FRC®) can help you evaluate your current allocations, navigate recent rule changes, and ensure your retirement strategy is aligned with your long-term goals, all at no cost.
