Thrift Savings Plan (TSP)

As a federal government employee, your retirement benefits are both complex and differ from those available in the private sector. These differences include the investment options and withdrawal rules for the Thrift Savings Plan (TSP).

At Minerva Planning Group, we help federal government workers feel confident in the decisions they make about their retirement benefits. If you are a federal employee, we will work with you to make informed decisions about your TSP retirement options.

For example, one of the crucial choices you face is deciding how to withdraw money from TSP after retirement. We will help you select which of the various options would be best for you in light of your overall retirement plan.

Those TSP account withdrawal are:

  1. Take regular withdrawals: Though the most straightforward of options, you must remember to take regular withdrawals. If you don’t, your account balance could be forfeited (though it can be recovered), and the IRS may penalize you. You also need to understand the withdrawals in light of the impact they may have on your income taxes.
  2. Annuitize your TSP: If you decide to annuitize, we will make sure you understand your payment options (single life, 100% survivor option, 50% survivor benefit) as well as how the TSP annuity income would fit within your overall plan.
  3. Roll your account into an IRA: A rollover offers flexibility and potentially more investment options—though you should understand that the TSP’s G fund cannot be easily replicated in an IRA. We will help you determine whether the G fund is crucial to your investment strategy, and if so, what your other options are.

In addition, your plan will include other TSP considerations, such as the timing on when you choose to make TSP withdrawals.

These decisions will not be made in isolation. Rather, they will be made in tandem with your benefits under the Federal Employee Retirement System (FERS), Social Security Income and any other resources you can bring to bear in meeting your overall goals for retirement.