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Is TSP considered a retirement plan? I'm wondering if the Thrift Savings Plan (TSP) is classified as a retirement plan. Can someone clarify this for me?
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Yes, the Thrift Savings Plan (TSP) is indeed a retirement plan. It is a defined contribution retirement savings plan for federal employees and members of the uniformed services. TSP offers the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. It allows participants to save for their retirement by making contributions to their individual TSP accounts. The contributions can be made on a pre-tax basis, and the earnings are tax-deferred until withdrawal. Participants can choose from various investment options within the TSP, including government securities investment (G) fund, fixed income index investment (F) fund, common stock index investment (C) fund, small capitalization stock index investment (S) fund, and international stock index investment (I) fund. TSP is a valuable retirement savings vehicle for eligible individuals, providing them with the opportunity to build a nest egg for their post-employment years.
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