The TSP for non-BRS Uniformed Services Members


As a member of the uniformed services
you receive many great benefits. Even if you are not covered by the Blended Retirement System you can still contribute to the Thrift Savings Plan. This can have a significant impact on your life in retirement. By contributing
to the TSP you can help protect your future while you protect our country. Like a 401k the retirement income you
receive from your TSP account will depend on how much money you contribute to it during your working years and the earnings that accumulate over time. And your TSP retirement benefits are yours no matter how long you serve. So why is participating in the TSP a great idea? Here are three reasons. Low administrative fees. Some plan fees can take the bang out of your buck but the
TSP as expenses are lower than similar plans so you keep more of what you save. Investment options. The TSP offers you five individual investment funds that
cover nearly all the investment landscape. The TSP also has Lifecycle
funds which are an ideal solution if you don’t have the time, experience or
interest in managing your retirement investments. Tax treatments The TSP gives you a choice of tax treatments. Pre-tax or traditional and after tax or Roth. Traditional contributions come out of your pay before tax and your investment
earnings are tax deferred. When you withdraw your money at retirement it’s
subject to income tax. With Roth contributions you pay taxes on the money
you save before it goes into your TSP account so you pay no income taxes when
you take it out and your earnings can also be tax-free if certain conditions are met. Watch our Roth video to find out more. If you are serving in a combat zone here’s something else you need to know. When you make traditional contributions from tax-exempt pay you won’t pay any tax on
the contributions but your earnings will be taxed when withdrawn. And if you make
Roth contributions from your tax-exempt pay not only are your contributions
tax-free when withdrawn but so are their earnings as long as you meet the
necessary IRS rules. Here’s how you sign up. Check with your services payroll
office about its procedures for starting your TSP contributions. You’ll either use your services electronic system or you’ll
fill out a form TSP-U-1, Election Form. If you complete form U-1
remember that you must return it to your payroll office not the TSP. Want to know more? Visit our website at tsp.gov or call the thrift line and speak to a
participant services representative. For more information about contributing to the TSP contact your services payroll office.

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