1. “One of the finest retirement plans in the world!”
Thrift Savings Plan
“One of the finest retirement plans in the world!”
Presented by Tamra Ivanoff, AFC®
Personal Financial Counselor
Updated February 2016

2. Agenda
Thrift Savings Plan overview
Enrollment and participation
Contributions
Roth TSP
Investment funds and options
Withdrawals and loans
Contact information

3. What is the Thrift Savings Plan?
Government-sponsored retirement plan
Open to all uniformed service members
Similar to 401(k) plan
Defined contribution plan

4. Why Sign Up? Pre-tax/tax-deferred options
Choose your investment options
Easy to contribute with automatic deductions
Take your money with you if you transition…
…or keep it in TSP until you retire

5. Enrollment and Your Account
mypay.dfas.mil Ensure DFAS has current mailing address!
Personnel Office: Form TSP-U-1
Account #
Web password
ThriftLine PIN
Access through:
ThriftLine
Designate Beneficiary: Form TSP-3
Distribute benefits: Form TSP-17
Account Access
Enrollment
Beneficiaries

6. Making Contributions Two types:
Regular (including automatic enrollment)
Catch-up (after age 50)
1-100% of incentive/special/bonus pay with contribution from basic pay
Contributions from tax-exempt pay also tax-exempt
No matching option

7. Contribution Limits 1-100% Incentive, Special, Bonus Pay
Elective Deferral Limit ($18,000 in
(2016)
Traditional and Roth contributions
Elective limit does not apply to traditional contributions made from tax-exempt pay earned in a combat zone

8. TSP Investments What are my retirement needs? What is my time horizon?
How much risk am I willing to accept?
How much risk am I able to accept?
How much diversification do I need?

9. Roth TSP Contributions are after-tax Withdrawals allowed IF:
Five (5) years have passed since Jan 1 of first contribution year, AND
You are 59 ½ or older, permanently disabled, or deceased.

10. Individual Funds Fund Description Volatility Current as of April 2015
10-Year Compound G
Government Securities
Low
3.19% F
Government, Corporate, and Mortgage-backed Bonds
Relatively Low
4.89% C
Stocks of large and medium-sized
U. S. Companies
Moderate
7.72% S
Stocks of small to medium-sized U. S. Companies not included in the C Fund
Moderate to High
9.44% I
International Stocks of developed countries
4.58%
Current as of April 2015

11. Lifecycle (L) Funds Fund Description L 2050
Annual returns
L 2050
Time Horizon for use of funds—2045 or later
6.37%
L 2040
Time Horizon for use of funds—between 2035 and 2044
6.22%
L 2030
Time Horizon for use of funds—between 2025 and 2034
5.74%
L 2020
Time Horizon for use of funds—between 2015 and 2024
5.06%
L Income
Funds used currently
3.77%
Current as of April 2015

12. L Fund Allocation Targets

13. Which Investment Approach?
Professionally determined mix
Lifecycle Fund
Based on Time Horizon
Seeks best asset mix
Review on annual basis
Reallocate mix with age
Or…
Self-Determined Fund Mix
L Fund

14. How Much Can You Save with the TSP?
20 years from now*
30 years from now*
40 years from now*
If you contribute…
$30 per month
$13,860
$30,135
$59,745
$20,790
$45,200
$89,615
$55,445
$120,540
$238,980
$97,030
$210,950
$418,215
$110,890
$241,085
$477,955
$45 per month
$120 per month
$210 per month
$240 per month
*All figures assume a 6% annual rate of return compounded monthly 

15. After Your Military Service
Funds can remain in TSP.
Funds can be transferred to an IRA or other eligible plan.
Contributions can be made via transfers.
Funds can be withdrawn.

16. In-Service Withdrawals
Financial hardship or age-based !
Money is not repayable – when it’s gone, it’s gone! !
Age-based withdrawal subject to 20% income tax !
Hardship withdrawals also subject to income tax and10% age penalty !
Cannot contribute to TSP for six months afterward

17. Withdrawal Options After age 59 ½ , your withdrawal options include:
Single “Lump Sum” Payment
Series of monthly payments
Annuity
Or—
Leave the money in TSP
Transfer the money to an IRA or an employer’s plan
Withdrawals must begin by age 70 ½ or the year you separate if you’ve reached 70 ½.

18. TSP Loan Program General Purpose or Residential
$1,000 – $10,000/$50,000 (depending on TSP account balance)
1-5 year repayment term
Repayment must begin within 60 days of disbursement
$50 loan fee
Fixed interest rate (G Fund)

19. TSP Contact Information
Thrift Savings Plan Website:
TSP ThriftLines:
1-TSP-YOU-Frst ( )
1-TSP-Thrift5 ( ) TDD
Personal Financial Counselor at your Military Family Center

20. Summary Questions? Thrift Savings Plan overview
Enrollment and participation
Contributions
Roth TSP
Investment funds and options
Withdrawals and loans
Resources
Questions?

21. Conclusion