What is the TSP agency match for FERS employees?

FERS employees receive an automatic 1% agency contribution regardless of personal contributions, plus dollar-for-dollar matching on the first 3% contributed, and $0.50 per dollar on the next 2%. Contributing at least 5% of salary captures the full 5% agency match — effectively doubling your first 5% of contributions. This match vests after 2–3 years of federal service.

What are the 2025 TSP contribution limits?

The 2025 elective deferral limit is $23,500 for employees under 50. Those 50 and older can contribute up to $31,000 (adding a $7,500 catch-up contribution). Employees aged 60–63 have an enhanced catch-up limit of $34,750 under the SECURE 2.0 Act. Agency contributions (automatic 1% and match) do not count against the employee limit.

Which TSP fund should I choose?

The Lifecycle (L) funds are target-date funds that automatically rebalance — a solid default for most employees. The C Fund (mirrors the S&P 500) has the highest historical returns but more short-term volatility. The G Fund (Government Securities) is the safest but lowest-returning option, suitable only for near-retirees. For employees with 20+ years to retirement, the L 2045 or L 2050 fund or a C/S/I blend is commonly recommended.

Can military members contribute to TSP?

Yes. Under the Blended Retirement System (BRS) for service members who joined after January 1, 2018, DoD provides an automatic 1% contribution and matches up to 4% after 2 years of service. Members under the legacy High-3 system can also contribute to TSP but receive no matching contributions. All service members can choose Traditional or Roth TSP.

When can I withdraw from TSP without penalty?

Penalty-free withdrawals are available at age 59½ for all participants. Federal employees who separate from service in the calendar year they turn 55 (or later) can access TSP under the Rule of 55 without the 10% early withdrawal penalty. FERS employees retiring at their Minimum Retirement Age (MRA, 55–57 depending on birth year) with an immediate annuity can also withdraw from TSP without penalty.

Roth TSP vs. traditional TSP — which should I choose?

Traditional TSP contributions are pre-tax — you reduce your taxable income now, and pay taxes on withdrawals in retirement. Roth TSP contributions are after-tax — you pay taxes now, and qualified withdrawals in retirement are tax-free. The better choice depends on whether your tax rate is higher now or will be higher in retirement. Federal employees in the 22–24% bracket who expect to stay in a similar bracket in retirement often benefit from Roth; those in the 32%+ bracket may prefer traditional. Many advisors recommend contributing to both for tax diversification.

What is the TSP C Fund and how has it performed?

The C Fund (Common Stock Index Investment Fund) tracks the S&P 500 index, which represents the 500 largest US companies. It has historically delivered approximately 10–11% average annual returns over long periods (40+ years). For FERS employees with 15+ years to retirement, the C Fund has produced the highest long-term returns of any TSP fund. The S Fund (small-cap stocks) and I Fund (international stocks) add additional diversification. The G Fund (Government Securities) is capital-preserved but currently returns only 3–4%, making it appropriate mainly for near-retirees.

TSP Calculator — Thrift Savings Plan Balance

Projects Thrift Savings Plan balance at retirement with FERS agency match, 2025 limits, and year-by-year table.

Age	Your Contrib.	Agency Match	Year-End Balance
35	$7,500.00	$3,750.00	$65,537.50
36	$7,650.00	$3,825.00	$82,403.38
37	$7,803.00	$3,901.50	$100,695.43
38	$7,959.06	$3,979.53	$120,518.40
…
39	$8,118.24	$4,059.12	$141,984.46
57	$11,594.85	$5,797.42	$998,670.56
58	$11,826.74	$5,913.37	$1,087,559.42
59	$12,063.28	$6,031.64	$1,183,050.15
60	$12,304.54	$6,152.27	$1,285,612.45
61	$12,550.64	$6,275.32	$1,395,749.09

What Is the Thrift Savings Plan (TSP)?

This TSP calculator projects your Thrift Savings Plan balance at retirement with FERS agency match and a year-by-year growth table. The Thrift Savings Plan (TSP) is the retirement savings and investment plan for federal government employees and uniformed service members. It is the federal equivalent of a private-sector 401(k) plan — offering the same tax-advantaged contribution structure and the same annual contribution limits ($23,500 in 2025). What makes the TSP distinctive is its combination of a generous employer match (for FERS employees), extremely low expense ratios (among the lowest of any investment vehicle in the world), and a straightforward fund lineup.

FERS employees — the vast majority of federal civilian workers hired after 1983 — receive the FERS Basic Benefit pension, Social Security, and the TSP as three pillars of their retirement package. The TSP component is the one most directly influenced by your own savings behavior. Military members under the Blended Retirement System (BRS, for those who joined after January 1, 2018) also receive a TSP match from the Department of Defense. Traditional TSP contributions are pre-tax (reducing current taxable income); Roth TSP contributions are after-tax (with tax-free growth and withdrawals). Both options are available to all participants.

How to Use the TSP Calculator

Enter your current age, planned retirement age, current TSP balance, annual salary, and contribution percentage. Set the agency match to 5% if you are a FERS employee (the standard full match). Adjust the expected annual return and salary growth rate to model different scenarios. Results update in real time and include a year-by-year projection table.

Understanding the FERS Agency Match

The FERS agency match is one of the most valuable benefits available to federal employees. Here is how it works: your agency automatically contributes 1% of your salary to your TSP account regardless of whether you contribute anything. On top of that, your agency matches dollar-for-dollar on your first 3% of contributions, and $0.50 per dollar on the next 2%. If you contribute 5% of salary, you receive a total of 5% from your agency — effectively a 100% match on your first 5%.

This match vests over 2–3 years. Leaving federal service before vesting means forfeiting the match. Contributing at least 5% is strongly recommended for all FERS employees — it is the equivalent of an immediate 100% return on those first dollars. Use our FERS pension calculator alongside this tool for a complete retirement picture.

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TSP Contribution Limits for 2025

The IRS sets annual contribution limits that apply to the TSP just as they do to 401(k) plans. For 2025, the elective deferral limit is $23,500. Employees aged 50–59 or 64+ can add a $7,500 catch-up contribution for a total of $31,000. Under SECURE 2.0 Act provisions, employees aged 60–63 have a higher enhanced catch-up limit of $34,750 in 2025.

Agency contributions (the automatic 1% and the matching contributions) do not count against the employee limit. If you are a high earner near the limit, you can still receive the full agency match even after hitting your personal cap. Contribution limits typically adjust with inflation each year.

TSP Investment Fund Options

The TSP offers five core funds and a series of Lifecycle funds. The G Fund (Government Securities) is capital-preserved with modest returns (~3–4%/year historically). The F Fund (Fixed Income Index) tracks the US bond market. The C Fund (Common Stock Index) mirrors the S&P 500 (~10%/year historical return). The S Fund (Small Cap Stock Index) tracks smaller US companies. The I Fund (International Stock Index) covers international developed markets.

The L Funds (Lifecycle) automatically blend and rebalance C, S, I, F, and G funds based on your target retirement date — becoming more conservative as retirement approaches. They are the simplest option for most employees and comparable to target-date funds in commercial 401(k) plans. You can also build a custom allocation among the five core funds.

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TSP vs. 401(k): Key Differences

The TSP is structurally similar to a private-sector 401(k) — same contribution limits, same tax treatment options (Traditional pre-tax or Roth after-tax), same growth mechanism. The differences are in costs and options. TSP has some of the lowest expense ratios available — typically 0.04–0.06% annually compared to 0.5–1.5% for many employer 401(k) plans. Over a career, the fee difference on a large balance is meaningful.

The TSP's limitation is fewer investment options compared to commercial 401(k)s. You cannot invest in individual stocks or sector funds through TSP. But for most buy-and-hold investors, the five core funds cover the major asset classes effectively. Pair TSP with a Roth IRA via our IRA calculator to model tax diversification in retirement.

Financial Disclaimer

This calculator is for educational and planning purposes only. Results are projections based on assumed constant return and salary growth rates — actual investment returns will vary year to year. TSP contribution limits and agency match rates may change. This tool does not constitute financial or retirement advice. Consult your HR office, OPM, or a certified financial planner for guidance specific to your situation.

TSP Calculator