401k and Thrift Savings Plan

A common type of company-sponsored employee retirement plan is a 401(k) plan. While there are limits on how much you can contribute, you don’t have to pay income taxes on the money you contribute until you take a withdrawal. The withdrawal may also be subject to a federal 10% penalty if it is taken prior to age 59 ½.

Every federal employee, including military members, may contribute to a Thrift Savings Plan. The traditional TSP plan offers the same type of savings and tax benefits as a 401(k) plan. To learn more, visit the Thrift Savings Plan (tsp.gov) website.

Contributing to the Thrift Saving Plan (TSP) can help you increase your retirement savings. Every federal employee, including military members, may contribute to a Thrift Savings Plan. The traditional TSP plan offers the same type of savings and tax benefits as a 401(k) plan.
Military members may also contribute to a Roth TSP, which is a way to save for retirement and pay your taxes now so your withdrawals in retirement are tax-free.
The traditional TSP plan offers the same type of savings and tax benefits as a 401(k) plan. To learn more, visit the Thrift Savings Plan (tsp.gov) website.

Companies generally offer different options for you to invest money in a 401(k). Some offer to match a portion of eligible contributions. If yours does, try to take full advantage of it. Contribute enough to get the full match if you can.

If the employer contributes, keep in mind that their contributions can vary year to year, so check with them at the beginning of each year.

Also, take advantage of the “catch up” provision starting at age 50 to maximize the amount of money you contribute.

Enroll in the Thrift Savings Plan or a 401(k) offered by your employer. Start saving now and give your money time to grow.

To learn more, visit the Thrift Savings Plan (tsp.gov) website. Remember: It’s a good idea to check your benefit package periodically, because it may change.

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