If you’re a federal employee or member of the uniformed services, your Thrift Savings Plan (TSP) is one of the most powerful tools available for retirement. It works similarly to a 401(k), allowing you to contribute from your paycheck into tax-advantaged investments designed for long-term growth.

Whether you’re early in your career or within 5–10 years of retirement, the decisions you make with your TSP can have a lasting impact on your financial future.

Call/Text (803) 736-3406 to request a TSP review.

The TSP is a defined-contribution retirement plan for federal employees and military personnel. Your account balance depends on how much you contribute and how your investments perform over time.

You can choose between:

• Traditional (pre-tax) contributions for tax savings today

• Roth (after-tax) contributions for tax-free withdrawals in retirement

Many federal employees also receive agency contributions, making the TSP a cornerstone of retirement planning.

If you’re under FERS or BRS, your agency may contribute:

• Automatic 1% contribution (even if you don’t contribute)

• Matching contributions up to 4%

• Total potential agency contribution: 5%

Failing to contribute at least 5% means missing out on part of your compensation package.

• Employee contribution limit: $24,500

• Age 50+ catch-up: $8,000

• Ages 60–63 super catch-up: $11,250

New rule: Higher earners must make catch-up contributions as Roth contributions.

The TSP offers a streamlined lineup of low-cost index funds designed for long-term growth and diversification.

Core Funds

• G Fund: Government securities (stability)

• F Fund: Bonds

• C Fund: Large U.S. stocks

• S Fund: Small & mid-cap stocks

• I Fund: International stocks

Lifecycle (L) Funds

Automatically adjust risk over time based on your expected retirement date.

Both options offer advantages:

Traditional TSP

• Reduces taxable income today

• Taxes due when withdrawn

Roth TSP

• No tax break now

• Tax-free withdrawals in retirement

Choosing the right mix depends on your current tax bracket, future income expectations, and retirement timeline.

When you retire or leave federal service, you have several options:

• Leave funds in the TSP

• Set up monthly installments

• Take partial withdrawals

• Purchase a TSP annuity

• Roll over to an IRA for more flexibility

Each choice affects taxes, investment control, and income planning.

A rollover may provide:

• Broader investment options

• Tax planning opportunities

• Consolidation with other retirement accounts

However, the TSP offers low fees and simplicity, which remain attractive for many retirees.

The right decision depends on your overall retirement plan.

We work with federal employees and retirees to:

• Coordinate TSP, pension, and Social Security income

• Evaluate Roth vs. Traditional contribution strategies

• Build an allocation you can stick with through market cycles

• Create a tax-efficient withdrawal plan

• Determine if a rollover fits your goals

If you’re within 5–10 years of retirement, now is the time to review your options.

Call/Text (803) 736-3406 to schedule a TSP review.

Is the TSP similar to a 401(k)?

Yes. The TSP functions much like a private-sector 401(k), offering tax advantages and employer contributions.

How much should I contribute?

At minimum, consider contributing enough to receive the full agency match.

Are TSP fees low?

Yes. The TSP is known for extremely low costs compared to many retirement plans.

Can I use both TSP and an IRA?

Yes. Many federal employees contribute to both for additional tax diversification.

Federal employees in the Columbia area face unique retirement decisions, especially when coordinating pensions, TSP withdrawals, and Social Security.

If you want a second opinion on your TSP strategy, we’re here to help.

Milestone Wealth Advisors
3321 Forest Dr. Ste. 7
Columbia, SC
(803) 736-3406