what is the point of a TSP?

what is the point of a TSP thrift savings plan do i put like 100 dollars in it a month and get 7% back in a year or what i know its for retirement but i dont know how it works if i put 500 dollars in it every month for 20 years how much will i have in it and when can i actually receive the money in my hands

im in the army right now so does this make any difference to the plan?

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  • 8 years ago
    Favorite Answer

    TSP is similar to a 401k for civilian companies.

    As active duty you do not get matching funds, as civilian government workers do. Your max contribution in 17% of your base pay. Interest rates will vary with with funds you choose to invest in.

    It is Pre-Tax contribution, You do not pay taxes on money until it is withdrawn at retirement.

    Must be at least 59.5 to start withdrawing funds.

    Read and learn, educate yourself.

    https://www.tsp.gov/index.shtml

    Source(s): Retired AF SNCO
  • Steve
    Lv 7
    8 years ago

    The TSP is a great investment plan. I can't tell you how much return you'll get because you have the option of moving your money around to different funds once a month. Contact your finance office and ask them for website advice.

    Read, study, learn.

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