1. What is the TSP Calculator?

The TSP (Thrift Savings Plan) Calculator helps military personnel estimate the future value of their retirement savings based on annual contributions, matching funds, and expected growth rate over their years of service.

2. How Does the Calculator Work?

The calculator uses the future value equation:

Where:

• \( Contributions \) — Annual contributions to TSP (USD)
• \( Rate \) — Expected annual growth rate (decimal)
• \( Years \) — Years of service remaining
• \( Match \) — Annual matching contributions (USD)

Explanation: The equation calculates compound growth of contributions plus any matching funds provided by the military.

3. Importance of TSP Planning

Details: Proper TSP planning is crucial for military retirement security. Understanding potential growth helps service members make informed contribution decisions and retirement planning.

4. Using the Calculator

Tips: Enter annual contributions in USD, expected growth rate as a decimal (e.g., 0.07 for 7%), years of remaining service, and any matching funds. All values must be valid (positive numbers, years between 1-50).

5. Frequently Asked Questions (FAQ)

Q1: What is the current TSP matching for military?
A: As of 2023, the military matches up to 5% of base pay for those in the Blended Retirement System.

Q2: What's a realistic growth rate assumption?
A: Historically, the C Fund (S&P 500 equivalent) has returned about 7% annually after inflation, but past performance doesn't guarantee future results.

Q3: How does this differ from civilian 401(k)?
A: TSP has lower fees than most 401(k) plans and offers unique funds like the G Fund (government securities).

Q4: When can I withdraw from TSP?
A: Generally at age 59½ without penalty, or earlier under certain conditions like separation from service after age 55.

Q5: Are there contribution limits?
A: Yes, IRS sets annual limits ($22,500 in 2023, with $7,500 additional catch-up if 50+). Special rules apply for combat zone contributions.