3 Things to Consider When Using TSP Calculators
3 Things to Consider When Using TSP Calculators
For many federal employees, the Thrift Savings Plan (TSP) has helped millions invest wisely and save for retirement. If you are feeling overwhelmed about how to best use this plan, the Thrift Savings Plan Calculator is a great place to start. Federal Educators explores this helpful tool that allows you to invest your way while saving for what’s important to you.
Along with general TSP retirement information, the Office of Personnel Management includes several TSP calculators. These tools are designed for federal employees to calculate their accounts and savings information. Using them can be exceptionally helpful but there are several factors that can affect how much you can save, how much you can make, and other critical decisions that can impact retirement.
- Matching Contributions
Usually, most employers will match contributions up to a certain amount for TSP. Financial calculators can show the employer’s matching levels while determining how much you can make. If possible, contribute the highest amount to meet your employer’s matching contributions for your TSP. It is essentially free money so take advantage of it!
- Take-home Pay
Perhaps the most important calculation you can review on a TSP calculator! This calculation shows how much you have earned after taxes and TSP contributions. Budgeting your take-home pay allows you to plan for current and unexpected expenses.
- Loans
Did you know that you can borrow loans from your TSP? We don’t recommend this for everyday expenses but if there’s an emergency, access to these funds is incredibly helpful! Currently, the minimum amount that can be borrowed is $1,000 and the maximum is $50,000. Use the TSP calculator to determine amounts, interest rates, and how much you will owe when you pay it off. To borrow against a TSP account, you must be a federal employee currently in pay status.
For more comprehensive TSP planning, the Federal Educators team can provide your family with resources and tools tailored to your journey. Call the Tampa office at (813) 755-7037 or request a free benefits analysis today.