When I talk to people about the Thrift Savings Plan the most common complaint I usually hear is how difficult it can be to withdraw funds from your account. Well, you may not believe it, but there is a bi-partisan effort underway in Congress to improve these rules and allow for greater withdrawal flexibility for TSP participants. In April, Senate Bill 873, The Thrift Savings Plan Modernization Act was sponsored by Senators Portman and Carper, and at the end of June, a companion bill, HR 3031, was sponsored in the House of Representatives by Representatives Cummings, Meadows, and Norton.
Congratulations, you just spent the past four years in one of the most challenging college environments that exist. You were pushed to your physical, emotional, and intellectual limits and earned the right to be commissioned as an officer in the United States Military. So now, while you are enjoying a little leave, on your way to your basic officer course, or already at your first assignment leading troops, you need to make sure you are planning for retirement. Wait, what, retirement, but you just graduated? Remember, you will never again get the chance to start planning for retirement
After a month or so delay, the DoD’s Retirement Comparison Calculator is now live! The comparison calculator allows service members to input some of their basic information and provides a detailed comparison on what their retirement income would look like under both the current retirement system and the new Blended Retirement System. This is a valuable tool to help provide service members with more information that they can use in making the decision on whether or not to opt-in to the new retirement system when it is implemented in 2018.
Getting to Know Your TSP Fund Options
Understanding the Military’s New Blended Retirement System, Part 2
Understanding the Military’s New Retirement System, the Blended Retirement System
For years, those who have served in the military have had one constant; if you serve 20 or more years, you get a pension for life, if you don’t, you get nothing. This changed a little when the Thrift Savings Plan (TSP) came into effect in the late 1980s. With the TSP, the government did give service members a mechanism for saving money direct from their paycheck. The big key here is that it was ONLY the service members money, Uncle Sam kicked in nada. If you contra