What Is the Thrift Savings Plan?

By Matthew DiLallo – Updated Nov 5, 2025 at 11:05 AM

Key Points

TSP allows federal workers to invest pre-tax (traditional) or post-tax (Roth) with tax-free withdrawals in Roth.
Participants can match their contributions with employer funds, enhancing retirement savings.
TSP offers various funds and lifecycle options, adapting investments to retirement timelines.

The Thrift Savings Plan (TSP) is a retirement savings plan for U.S. government employees and members of uniformed services. It’s a defined contribution plan, similar to a 401(k). Like a 401(k), it provides participants a tax-advantaged way to save for retirement.

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Drawing Retirement Plan Growth — Image source: Getty Images

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Emergency Fund

A savings stash for unexpected expenses, like medical bills or job loss, providing financial security and peace of mind.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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