How Much Can You Contribute to the TSP in 2010?
Sometimes no change can be good. On October 15th the Internal Revenue Service announced the elective deferral limit for defined contribution plans such as the Thrift Savings Plan
If you are a federal employee, you may be wondering how to plan for your retirement and make the most of your Thrift Savings Plan (TSP). The TSP is a tax-advantaged retirement savings plan that allows you to invest in various funds and options, depending on your risk tolerance and goals. On this tag page, you will find articles and resources that will help you understand the benefits and features of the TSP, as well as tips and strategies to increase your investment returns and secure your future income. You will also learn about the latest news and updates on the TSP performance, fees, withdrawals, and more. Whether you are just starting your federal career or are near retirement, these articles will provide you with valuable information and guidance on how to make the best use of your TSP.
Sometimes no change can be good. On October 15th the Internal Revenue Service announced the elective deferral limit for defined contribution plans such as the Thrift Savings Plan
Investors in the Thrift Savings Plan have seen their returns reflecting a positive return for a number of months now. September continues the same upward trend.
The C fund has now had six straight months of gains in the federal Thrift Savings Plan. No doubt, TSP investors are cheering the 2009 results so far but there is still plenty of reason to be cautious in investing your retirement funds.
Lifecycle funds are growing in popularity for TSP investors. At the end of July, more than 606,000 TSP investors had money in an L fund. But investors are not putting all of their assets in one location. The number of participants with their entire TSP balance in one L fund is surprisingly small.
The federal debt is increasing rapidly. America’s creditors are nervous about getting their money back and the potential impact of inflation. The Treasury Department is trying to reassure investors as the government prepares to borrow another $406 billion in the next quarter. Federal employees have an investment alternative not available to the general public.
The index that is used as the basis for the Thrift Savings Plan’s C fund has had its best five-month run since 1938. TSP funds are up for the month and also up substantially for the year as well. That is good news but also consider the performance of your funds over the past twelve months as well.
Virtually all of the Thrift Savings Plan funds had a positive return in June. The exception: the I fund which is still down more than 31% in the past twelve months.
The tobacco bill, which contained changes to the federal government’s thrift savings plan, has been signed into law.
Investors in the Thrift Savings Plan are reversing a trend that has been continuing for months: They are again moving money into the TSP’s underlying stock funds and out of the safer G and F funds.
The tobacco bill has been approved by Congress. The new legislation will make changes to the TSP but the final version does not include a change to allow credit for unused sick leave for FERS employees.