Thrift Savings Plan (TSP)
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A 401(k) for federal employees
The Thrift Savings Plan (TSP) is a federal government-sponsored retirement savings and investment plan designed specifically for civil service employees and members of the uniformed services. Operating similarly to a private-sector 401(k), it helps participants build long-term wealth by allowing them to contribute a portion of their pre-tax or after-tax (Roth) pay directly from their paychecks into low-cost investment funds. The plan significantly boosts retirement security by offering agency matching contributions of up to 5% for eligible workers, essentially providing free money that compounds over time alongside historically low administrative fees to maximize lifetime savings.