How the TSP gives back to the Armed Forces and federal employees
It’s Armed Forces Day and we’re busy thanking the men and women who serve our country with our friends at Military Saves. Military Saves, a partner in the Department of Defense’s Financial Readiness Campaign, seeks to motivate, support, and encourage military families to save money, reduce debt, and build wealth.
In honor of our Armed Forces, today we’re breaking down one of our favorite ways that the country gives back to servicemembers and their families: the Thrift Savings Plan.
The Thrift Savings Plan (or TSP) is a retirement plan available to uniformed services members and federal employees. Often called the “best retirement plan in the country,” the TSP is known for its simplicity, extremely low costs, and professionally designed funds that you can select based on your comfort levels with risk and investing.
One of the advantages of the TSP is that if you leave military service before you’re eligible for your pension, your TSP can go with you.
Another advantage is the Roth option, where you pay taxes on the money now instead of when you retire. This can be a great deal for anyone receiving combat zone pay, which is tax-exempt. You can also make contributions from basic pay, incentive pay, special pay, and bonus pay.
According to the Federal Retirement Thrift Investment Board, thousands of uniformed service members younger than 35 have been able to save $100,000 in their TSP accounts. Here’s how you can join them.
If you’re a member of the Armed Forces and want to build your savings, take the pledge to begin saving today at Military Saves. Those with a savings plan are twice as likely to save successfully, so Military Saves will connect you with savings tools and resources, and reminders and inspiration to stay on the right track.
How the TSP gives back to the Armed Forces and federal employees >> http://bit.ly/1Rgy7dL v/ @AmericaSaves #savings #TSP
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Are you a member of the military that needs motivation to save? Let Military Saves help you reach your savings and debt reduction goals. It all starts when you make a commitment to yourself to save. Take the first step today and take the Military Saves pledge to save money, reduce debt, and build wealth over time. And it doesn’t stop there. Military Saves will keep you motivated with information, advice, tips, and reminders to help you reach your savings goal, with the special needs of military families in mind. Think of them as your own personal support system.
- Written by Madeline Daniels
- Category: Blog
- Published: 21 May 2016