Paul Haarman Explains Key Things That Every Thrift Savings Plan Investor Should Know

As a federal employee, you can reap some incredible financial benefits. It is important to know, though if you have trouble understanding finances and different plans, you should allow federal retirement advisors and planners to help you. One such plan those federal employees have heard about but do not know much about is the thrift savings plan (TSP). This plan can prove extremely beneficial for you only if you know how to manage it in the right manner. A thrift savings plan works similar to how a 401(k) plan works and can be the ideal investment vehicle for you. But our advice is if you are looking for thrift savings plan rollover, then you should seek the assistance of experienced federal advisors.

In this article, we’ll be telling you Paul Haarman’s key things that every TSP investor should know. What are those things? Let’s find out.


You should know that whether you are investing in the plan or not, the government will send into your account 1 percent of your base pay on its own. The government does this for most employees. But you should know clearly that vesting does not work the same for every type of employee. This is why it is advised you properly educate yourself about how all of this works for your particular job position. Make sure that you discuss this one in detail with an expert not to make any mistakes.

Choosing the TSP type

Another thing every TSP investor should do is that they have the option of selecting between Roth-style TSP and the traditional TSP. In the former one, you will be saved from paying taxes later in retirement on withdrawals, but you will have to invest after-tax now. In traditional TSP, you pay taxes later but are required to invest pre-tax now. But you should know that in both ways, your money will grow tax-free so long as you go by the laid down rules. Paul Haarman says that it is necessary to know which TSP type is perfect for you and can be the most fruitful in the future.

The contributions

Just like the 401(k) plan, the contribution limits in the thrift savings plan are the same. When you are 50 years of age, the contribution limits are higher. After reaching this age, you are then qualified to make more catch-up contributions. To keep up with inflation, the limits are allowed to increase.

If you want to get the most out of a thrift savings plan, then you should make use of the perfect thrift savings plan retirement calculator. Like we mentioned above, there are federal retirement planners and advisors who can help you with everything related to thrift savings plans. Seek their professional assistance and make the process easy for you. You can easily find the most experienced and credible experts online who can help you. Make sure you go through thorough research before hiring an expert for your assistance.

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