![]() ![]() So if you contribute $5,000 to the TSP now that $5,000 will be taken off the top of the income reported to the IRS and won't show up on your W-2. That means you don't pay taxes on the money until you take it out. Your TSP contributions may be tax-deferred. For 2023 it is $22,500, but if you are over 50 you can contribute another $7,500 each year.ĭepending on which retirement plan you are under, the military may match your contributions up to 5% of your basic pay. However, your annual dollar total can't exceed the IRS limit. ![]() ![]() You can contribute any percentage (1 to 100) of your basic pay. Specific funds may charge additional fees. Users of the mutual fund trading portion of the TSP plan also face additional fees to use the system, including a $55 annual access fee, plus a $95 annual service fee if they own any funds and a per-trade fee of $28.75. TSP users may invest up to 25% of their total TSP balance in mutual funds, with a minimum investment of $10,000. You can also invest in mutual funds through the TSP program. This fund's objective is to achieve a low level of growth with a high emphasis on keeping your money safe. There is one more fund, the L Income, for when you are retired and taking money out of the TSP. These funds rebalance their investments every three months to keep in line with the plan of being a more aggressive investor if you are young and a safer one if you are older. The L 2065 Fund. Recommended for those who were born after 1999 and plan to begin withdrawing from their TSP account after 2062.The L 2060 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.The L 2055 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.The L 2050 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.The L 2045 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.The L 2040 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.The L 2035 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.The L 2030 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.The L 2025 Fund. Recommended for those who were born between 19 and plan to begin withdrawing from their TSP account between 20.However, if you are older (or closer to retirement) you don't want to bet everything on a risky investment because if you lose money you will most likely be unable to make up any loss before retirement.Ĭurrently the TSP has the following L funds: You can make a lot of money in the riskier investments and if they tank out you still have enough time to make back the money you lose. These funds are run by the Thrift Savings Plan people and automatically invest in all of the above funds based on what the experts think is the best strategy for you based on your age and prospective retirement status.įor example, if you are young most experts say you can take chances with investing. ![]() If you're not a gambler or a stock market whiz you may want to invest in the Lifecycle Funds. This is the riskiest fund, but you may also make the best rate of return from it too.
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