Thrift Savings Plan.
In plain English
The Thrift Savings Plan is the workplace retirement plan for federal civilian employees and members of the uniformed services. You contribute from each paycheck, with traditional pre-tax and Roth options, and most employees receive an employer match. Its defining strength is extremely low fees, with a small set of broad index funds (the C, S, I, F, and G funds) plus target-date Lifecycle funds. Those rock-bottom costs are part of why the TSP is often held up as a model for what a good workplace plan looks like.
01Why it matters
The very low fees mean far more of each dollar stays invested over a career, and capturing the full employer match is close to free money you should not leave behind.
02The math, step by step
In 2026 a federal worker can contribute up to the TSP elective deferral limit of $24,500 and gets an employer match on part of that. Because TSP fund expenses are a tiny fraction of what many retail funds charge, the cost difference compounds into a meaningfully larger balance over a 30-year career. The IRS sets this limit each year, so check the current figure when you set your contribution rate.
03What this is NOT
The TSP is the contribution-based piece you fund and invest, similar to a 401(k). It is separate from the FERS pension, the formula-based annuity the government pays based on your years of service and salary.
04Receipts
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