Changes

The '''Thrift Savings Plan (TSP)''' is a defined contribution [[pension]] plan for United States government civilian employees and members of the uniformed services.  It was started in 1987 as a major component of the [[Federal Employees Retirement System]] (FERS), the overhauled retirement system for new civilian employees.

The '''Thrift Savings Plan (TSP)''' is a defined contribution [[pension]] plan for United States government civilian employees and members of the uniformed services.  It was started in 1987 as a major component of the [[Federal Employees Retirement System]] (FERS), the overhauled retirement system for new civilian employees. As of December 31, 2017, the TSP has approximately 5.2 million participants (of which approximately 3.1 million are active participants via payroll deductions) and over $550 billion in assets under management.<ref>https://www.frtib.gov/ReadingRoom/FinStmts/TSP-FS-Dec2017.pdf</ref>

All employees and uniformed members may enroll and withdraw from the TSP at any time, as often as desired.  However, only civilian employees under FERS are eligible for matching contributions.

All employees and uniformed members may enroll and withdraw from the TSP at any time, as often as desired.  However, only civilian employees under FERS are eligible for matching contributions.<ref>The law allows the Department of Defense to designate any military position as eligible for matching contributions; none has been so designated.  A small pilot program, operated by the Army during the later 1980's, allowed for matching contributions for enlistees.  The program has since ended and as of December 31, 2017 only six Soldiers are still serving and receiving matching contributions.</ref>

New FERS employees are automatically enrolled upon hire and have 3% of their pay automatically deducted, unless they choose to withdraw.  Employees are automatically established a TSP account with 1% of their pay deposited (even if not participating, this does not stop), and are additionally matched at dollar-for-dollar up to the first 3% of pay, then at $0.50/$1 for the next 2% (thus, at 5% of pay, with automatic and matching contributions an additional 5% is deposited).  Employees may contribute above that (in terms of whole percentages or whole dollar amounts only) up to IRS limitations, but those contributions are not matched.  Also, "catch-up" contributions are allowed for employees age 50 or older<ref>Under IRS rules, an employee needs only to turn 50 sometime during the year to begin catch-up contributions, so an employee with a December 31 birthday can begin contributing on January 1 of the year s/he turns 50.</ref> up to IRS limitations (whole dollars only), but those contributions are also not matched.

New FERS employees are automatically enrolled upon hire and have 3% of their pay automatically deducted, unless they choose to withdraw.  Employees are automatically established a TSP account with 1% of their pay deposited (even if not participating, this does not stop), and are additionally matched at dollar-for-dollar up to the first 3% of pay, then at $0.50/$1 for the next 2% (thus, at 5% of pay, with automatic and matching contributions an additional 5% is deposited).  Employees may contribute above that (in terms of whole percentages or whole dollar amounts only) up to IRS limitations, but those contributions are not matched.  Also, "catch-up" contributions are allowed for employees age 50 or older<ref>Under IRS rules, an employee needs only to turn 50 sometime during the year to begin catch-up contributions, so an employee with a December 31 birthday can begin contributing on January 1 of the year s/he turns 50.</ref> up to IRS limitations (whole dollars only), but those contributions are also not matched.