TSP 101: What Every Federal Employee Should Know

Your Thrift Savings Plan may become one of your biggest financial assets—but do you really understand how it works? In this episode of Rayna Retirement, I’m getting back to basics and answering some of the most common questions federal employees have about the TSP. We’ll talk about the difference between Traditional and Roth contributions, how much you can contribute, how the government match works, and why contributing just 5% doesn’t necessarily mean you’re “maxing out” your TSP. We’ll also look at TSP loans and withdrawals, what happens once you retire, and why taxes and Medicare costs should be part of the conversation before you start taking money out. Finally, we’ll discuss the pros and cons of leaving money in the TSP versus considering other options—and why that decision should depend on your individual retirement goals rather than a one-size-fits-all answer. -- Contact Rayna directly at 850-450-6500 Or call the American Federal Benefits Consultants team at 1-800-872-8857 Visit: AmericanFederal.org -- YouTube: https://www.youtube.com/@RaynaRetirement Rayna Retirement is the go-to podcast for federal employees – or anyone – looking to make smarter financial decisions with clarity and confidence. Hosted by Rayna Reyes, co-founder of American Federal Benefits Consultants, this show simplifies the complexities of retirement, benefits, and financial planning. Whether you're navigating your FERS or CSRS pension, maximizing your TSP, or seeking expert advice on 401(k)s or IRAs, Rayna is here to guide you every step of the way. Tune in for practical knowledge, ethical solutions, and expert insights as you prepare for a secure and fulfilling retirement.