Wednesday, December 21, 2016
Friday, June 27, 2014
How to Sign Up for the Thrift Savings Plan
The Thrift Savings Plan (TSP) is the government version of a 401(k) retirement account. The Thrift Savings Plan offers both a regular retirement account and a Roth retirement account.
The Thrift Savings Plan is preferred over civilian retirement accounts because of the low fees associated with the plan options. Every retirement account invests your retirement money into different funds selected by you, these funds charge a management fee for invested money. The lower the fees, the more money comes back to you instead of going to the fund managers.
Investing in the TSP also takes advantage of the tax benefits of military service. Because Basic Allowance for Housing and Basic Allowance for Sustenance are not taxed, military members often have a lower taxable income than they would if they were in a civilian position.
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