Should I max out my TSP contributions?

At minimum, you should contribute at least 5% of your salary to capture the full agency match — the government's automatic 1% plus dollar-for-dollar matching on the next 3% of your salary, and 50 cents on the dollar for the next 1%. Beyond that, maxing out your TSP (up to $24,500 in 2026, or $32,000 if age 50+) depends on your overall financial situation, other savings goals, and whether you have high-interest debt. The TSP offers extremely low fees and excellent tax benefits, making it one of the best places to save for retirement.

Should I contribute to Roth or traditional TSP?

Traditional TSP contributions reduce your taxable income now but are taxed when withdrawn. Roth TSP contributions are made with after-tax dollars but grow and can be withdrawn tax-free in retirement. Generally, Roth makes more sense if you expect to be in a higher tax bracket in retirement, or if you're early in your career with lower current income. Traditional makes sense if you're in a high tax bracket now and expect lower income in retirement. Many federal employees benefit from a mix of both — we can model your specific situation to determine the optimal split.

Should I roll my TSP to an IRA when I retire?

The TSP has incredibly low expense ratios and offers unique benefits like the G Fund. However, an IRA rollover provides more investment options, greater withdrawal flexibility, and potentially better estate planning features. If you separate from service in the year you turn 55 or older, the TSP also allows penalty-free withdrawals before age 59½. Whether to keep your TSP or roll it to an IRA depends on your investment preferences, withdrawal needs, and overall estate planning goals. There's no one-size-fits-all answer — we evaluate your specific situation to make the right recommendation.

What are my TSP withdrawal options?

TSP offers four main withdrawal options: (1) Single payment of your entire balance, (2) Monthly installments based on your choice of amount or life expectancy, (3) Purchase of a TSP life annuity for guaranteed monthly income, or (4) A combination of these options. Each has different tax and income implications. Monthly installments offer flexibility but no income guarantee. Life annuities provide guaranteed income but no access to principal. Most retirees benefit from a strategic combination, often keeping some TSP funds for growth while taking systematic withdrawals coordinated with FERS and Social Security.

How do L Funds work and should I use them?

L Funds (Lifecycle Funds) are professionally managed portfolios that automatically adjust their allocation to become more conservative as you approach retirement. Each L Fund has a target retirement year (like L 2030, L 2040, etc.) and rebalances quarterly. They're designed as a simple, set-it-and-forget-it option. L Funds work well for hands-off investors who want automatic rebalancing, but they may not account for your specific situation — like whether you have a FERS pension, other savings, or a risk tolerance that differs from the average. We can evaluate whether an L Fund suits your needs or if a custom allocation makes more sense.

TSP PLANNING

TSP Planning & Withdrawal Strategies

The Thrift Savings Plan is one of the best retirement savings vehicles available — but most federal employees leave money on the table by not maximizing contributions, choosing the wrong allocation, or withdrawing funds inefficiently in retirement.

OPTIMIZE MY TSP →

Federal employee reviewing TSP investment strategy

"Your TSP is a phenomenal savings vehicle. Don't ruin it with the wrong withdrawal strategy."

— Mike Stevens, IAR

Funds Reviewed

G, F, C, S, I, L

Allocation

Age-appropriate strategy

Withdrawals

Optimized sequencing

Roth TSP

Evaluated

Cost

Included

THE PROBLEM

Does This Sound Familiar?

You're defaulting to the G Fund because it feels safe

The G Fund has zero market risk — but over 20-30 years, being too conservative can cost you hundreds of thousands in lost growth potential.

You're not maximizing the agency match

According to TSP.gov, the government contributes an automatic 1% and matches up to an additional 4% of your salary — but you must contribute at least 5% to get the full match. Anything less is leaving free money behind.

You're confused about Roth vs traditional TSP

Should you contribute to traditional TSP for the tax deduction now, or Roth TSP for tax-free withdrawals later? The answer depends on your current tax bracket and retirement income projections.

You don't know your TSP withdrawal options

Single payment, monthly installments, life annuity, or a combination? Each option has different tax implications and income guarantees — and you can't easily change after you decide.

THE SOLUTION

How We Help

Strategic TSP Allocation & Withdrawal Planning

We optimize your TSP allocation based on your time horizon, risk tolerance, and overall financial plan — then design a tax-efficient withdrawal strategy that coordinates with your FERS annuity and Social Security.

For 2026, federal employees can contribute up to $24,500 to the TSP, with an additional $7,500 catch-up contribution if you're age 50 or older. We help you determine the right contribution level and allocation mix to maximize your retirement savings while managing risk appropriately for your timeline.

Our TSP Strategies Include:

Asset allocation optimization across the five core TSP funds (G, F, C, S, I)
Lifecycle Fund (L Fund) evaluation and rebalancing guidance
Roth vs traditional contribution analysis based on your tax situation
Contribution rate optimization to maximize the 5% agency match
Catch-up contribution strategies for employees over 50
Tax-efficient withdrawal sequencing in retirement
TSP vs IRA rollover analysis (should you keep it in TSP or roll it over?)
Required Minimum Distribution (RMD) planning and management

How it Works

It's just three steps

BECOME A CLIENT

Step 1) TSP Review ▾

Analyze your current TSP balance, allocation, contribution rate, and beneficiary designations to identify opportunities.

Step 2) Build Allocation Strategy ▾

Create a risk-appropriate investment allocation based on your retirement timeline, other income sources, and risk tolerance.

Step 3) Withdrawal Planning ▾

Design a tax-efficient withdrawal strategy that coordinates TSP distributions with FERS, Social Security, and any other retirement accounts.

COMMON QUESTIONS

TSP Planning FAQ

Everything you need to know about maximizing your Thrift Savings Plan.

Schedule TSP Review