The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services, including the Ready Reserve. It provides the same types of savings and tax benefits offered by many private companies through 401(k) plans. TSP aims to provide retirement income and is a key part of the Federal Employees' Retirement System (FERS).

Federal employees are typically automatically enrolled in the TSP when they start federal service, with the option to modify their contribution levels or investment choices via the TSP website. Uniformed service members need to actively select participation by setting up an account through their payroll provider or the MyPay website.

In 2023, the contribution limit is $22,500 for those under age 50. Participants aged 50 and over can make additional catch-up contributions, increasing the total limit to $30,000. These limits apply to both traditional and Roth TSP contributions and may be updated annually based on IRS guidelines.

Yes, participants can borrow from their TSP accounts. There are two types of loans: general purpose loans, which can be used for any reason, and residential loans, which are for purchasing or constructing a primary residence. Loans must be repaid with interest; failure to repay may lead to tax consequences and penalties.

The TSP offers five individual funds: the Government Securities Investment (G) Fund, the Fixed Income Index Investment (F) Fund, the Common Stock Index Investment (C) Fund, the Small Capitalization Stock Index Investment (S) Fund, and the International Stock Index Investment (I) Fund. It also provides Lifecycle (L) Funds, which are target-date funds that automatically adjust their asset allocations as participants approach retirement.