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February 3, 2006, Newsletter Issue #47: Thrift Savings Plan
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Tip of the Week
The Thrift Savings Plan (TSP) is a retirement savings and investment plan that was made available to the military October 9, 2001. The purpose of the TSP is to provide retirement income. It offers participants the same type of savings and tax benefits that many private corporations offer their employees under so-called "401(k)" plan.
The TSP allows participants to save a portion of their pay in a special retirement account administered by the Federal Retirement Thrift Investment Board. The money that participants invest in the TSP comes from pre-tax dollars and reduces their current taxable income; investments and earnings are not taxed until they are withdrawn.
For more information about the Thrift Savings Plan, go to http://www.tsp.gov/uniserv/index.html#q1
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