Thrift Savings Plan (TSP)
Federal 401(k)-equivalent retirement plan. Under BRS, DoD contributes 1% automatically + matches up to 4% of your contributions.
Who qualifies: Active duty, National Guard.
The Thrift Savings Plan is a retirement savings plan for federal employees and military members, similar to a 401(k).
Blended Retirement System (BRS – for those who joined after Jan 1, 2018):
• DoD automatically contributes 1% of basic pay to your TSP after 60 days of service
• DoD matches your contributions up to an additional 4% (dollar for dollar up to 3%, then 50 cents on dollar for next 2%)
• Vesting: automatic 1% vests after 2 years; matching vests after 2 years
• Combined pension (reduced from 50% to 40% at 20 years) + TSP + lump sum option
Investment options include C Fund (S&P 500 equivalent), S Fund (small cap), I Fund (international), G Fund (government bonds), and Lifecycle Funds.
Contribution limits (2026): $24,500/year elective deferral, plus an $8,000 catch-up if age 50+ ($32,500 total; ages 60–63 can contribute up to $11,250 catch-up).
TSP is one of the lowest-cost retirement plans in existence – expense ratios under 0.05%.