The one thing that is absolutely uncertain in the market are the gains and losses you will accrue, but there is one exception. This exception guarantees that you can achieve 100% return on your annual contributions. Let me be crystal clear, you could contribute $2,000 to your Thrift Savings Plan and double your money EVERY YEAR GUARANTEED.
How do you accomplish such a task?
It’s real simple, the process is already in place.
If you are a FERS employee, you will receive matching contributions from your agency based on your regular contributions.
As a FERS employee, you will receive 100% matching contributions if you contribute 5% or more of your annual salary. As the table below shows, the first 3% of pay that you contribute will be matched dollar-for-dollar; the next 2% will be matched at 50 cents on the dollar. This amounts to an overall match of 4% – However, your agency contributes an automatic 1% regardless of if you contribute to your TSP or not. When you add it all up that is 5% of your annual salary that could be contributed to your TSP in addition to the contributions you have already made.
*Unfortunately, as of this moment members of the uniformed services do not receive Matching Contributions. However, the law that extended participation in the TSP to members of the uniformed services allows the secretary of each individual service to designate critical specialties as eligible for Matching Contributions under certain circumstances.