Welcome to Savings Guide
World Savings Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Thrift Savings Plan – The Concept
from:Introduction
The Thrift Saving Plan is a retirement savings program, designed especially for military members and civilian federal employees.
It is basically a defined contribution plan, designed to give federal employees the same retirement savings-related as enjoyed by the private sector workers with 401(k) plans.
It is primarily a tax-deferred fund, which means that the money contributed to the account is directly deducted from the person’s taxable income. The money deposited in the fund is not taxed until it is withdrawn at retirement, usually after the age of 59 ½, making it a significant amount of tax deduction.
Features and Benefits
The Thrift Savings Plan or TSP offers lucrative benefits and options to its investors. The main amongst these include tax deferral on contributions, a choice of 5 investment funds, a loan program, in-service withdrawals for financial hardship or after age 59, an option of post-separation withdrawal options and the ability to transfer money from other eligible retirement savings plans into your TSP account.
The Thrift Savings Plan offers six different funds in which employees can invest. These include:
• Government security fund
• Fixed-income fund
• Common stock fund
• Small cap stock fund
• International stock fund
• Life cycle fund
However, it is has to be noted that the Thrifts Saving Plan is meant for long-term retirement benefits. The system includes penalty charges for early withdrawals, which need to be avoided as far as possible.
For further understanding of the concept, here we’ve listed the main features and provisions of the concept of Thrifts Savings Plan. These include:
• Immediate member contribution
• Before tax savings and tax-deferred investment earnings
• Daily valuation of accounts
• Low administrative and investment expenses
• A vast choice of investment funds
• Ability to make contributions and interfund transfers with great ease
• Loans from your own contributions and attributable earnings while you are still in service
• Ability to designate beneficiaries for your account balance.
• Spouses’ rights protection for loans and withdrawals and recognition of qualifying court orders.
In addition, the service also offers a website that gives all the general information, capability for requesting contribution allocations and interfund transfers,, the option of initiating loan and withdrawal requests online, up-to-date TSP materials and information, on-line participation statements, calculators to estimate account growth, loan payments, along with an elective deferral calculator.
The Thrifts Savings Plan is one of the best facilities available in the sector of military services to facilitate savings at the best possible rate and terms, at the same time offering easy-to-use and practical systems for its users.
??
??
??
??
1
World Savings Specific links
World Savings News
AOL Government Announces Findings on Progress and Potential for Government Savings Using Mobile Technology
AOL Government today announced the release of new research findings on the impact mobile technology is having on the productivity and operations of federal government agencies. The
Read more...BOV CEO appointed to World Savings Banks Institute board
Bank of Valletta chief executive Charles Borg. Bank of Valletta CEO Charles Borg has been appointed as a member of the board of directors of the World Savings Bank Institute (WSBI) for a three-year period.
Read more...Cost Savings Is Top 2012 Focus for U.S. Commercial Fleets, According to GE Capital Fleet Services Survey
Forty-six percent of fleet managers cite cost savings as the primary focus of executive management as it relates to their company’s fleet operations, according to a recent survey conducted by GE Capital Fleet Services.
Read more...Federal Worker Savings Plan Computers Hit in Cyber-Attack
Last month the FBI notified the Thrift Savings Plan, the contribution retirement savings plan for Federal employees, that a contractor’s computer systems had been breached in a complex cyber-attack with 123,000 Social Security numbers being compromised. According to the Federal Retirement Thrift Investment Board (FRTIB)...
Read more...Tertiary savings fund new investment
Budget 2012 rebalances the Government's $4.
Read more...