Thrift Savings Plan (TSP) Growth Calculator

G Fund (Government Securities) — lowest risk, lowest return; F Fund (Fixed Income Index) — low risk, low-moderate return; C Fund (S&P 500 Index) — moderate-high risk, historically highest long-term return; S Fund (Small Cap Index) — higher risk, higher long-term potential; I Fund (International Index) — moderate-high risk, international diversification; L Funds — age-based lifecycle funds that automatically diversify.

Traditional TSP contributions are pre-tax — you reduce taxable income now and pay tax on withdrawals in retirement. Roth TSP contributions are after-tax — no immediate tax benefit, but qualified withdrawals (after 59½ and 5-year holding period) are completely tax-free. Combat zone pay contributed to Roth TSP is a unique opportunity — tax-free income going in, tax-free growth, tax-free out.

In 2024, the elective deferral limit (employee contribution) is $23,000/year. Those 50 and older can add a $7,500 catch-up contribution. Service members deployed to designated combat zones can contribute up to the annual additions limit — $69,000 in 2024 — though most or all of these contributions may need to come from special pays to exceed the standard limit.

Yes. TSP offers general purpose loans (for any reason) and primary residence loans. Loan amounts are generally between $1,000 and $50,000 (or 50% of vested balance). Loans must be repaid with interest. The interest rate is the G Fund rate. Unpaid loans at separation are treated as taxable distributions with potential penalties.

Your TSP account remains open after separation. You can leave funds in TSP, roll them over to an IRA or new employer plan, or take distributions (subject to taxes and penalties if before 59½). TSP's extremely low expense ratios make leaving funds there often advantageous. Required minimum distributions begin at age 73 for TSP accounts.

TSP has lower expense ratios (0.057% in 2023) than virtually any 401(k) or IRA fund — saving 0.5–1% annually versus typical retail funds. TSP is more limited in fund choices (6 core funds vs. potentially hundreds in a 401(k)) but the available funds cover all major asset classes at minimal cost. For most federal and military savers, TSP is an exceptional vehicle.

Traditional TSP withdrawals are fully taxable as ordinary income. Roth TSP qualified withdrawals are completely tax-free. Most states exempt federal pension and TSP income from state income tax, but this varies by state. Taxable distributions from Traditional TSP count toward MAGI for Medicare IRMAA calculations. This is particularly important in the context of tsp growth calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise tsp growth calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.

Penalty-free withdrawals from TSP begin at age 59½ (or age 55 if you separate from service in the year you turn 55 or later — the Rule of 55). Military retirees who retire under a defined benefit plan may qualify for the Rule of 55 exception earlier. Required Minimum Distributions begin at age 73 under SECURE 2.0.