The Thrift Savings Plan, or TSP, is the federal government’s version of a 401(k) retirement plan. When it was started in 1986, the TSP was only intended for Federal civilian employees. However, participation was opened to active-duty members and reservists in late 2001, becoming an option for servicemembers to fund their retirement.
To explore what you should know about the TSP before you leave active-duty service, Sarah Bumgardner, AAFMAA Director of Partnerships and Member Engagement, spoke with Anthony Nemanic, Senior Relationship Manager for AAFMAA Wealth Management & Trust (AWM&T). The knowledge Nemanic brings to this area is based on his diverse experience. Nemanic provides comprehensive financial planning guidance to his clients and, before joining AWM&T, he spent six years as a Nuclear Engineer with the Naval Sea Systems Command (NAVSEA). Nemanic earned a bachelor’s degree in Mathematics from Saint Vincent College and a bachelor’s degree in Nuclear Engineering from Penn State University. Currently, Nemanic and his wife Megan live in Tampa, Florida. He is a proud supporter of the Sun City Center, FL chapter of Military Officers Association of America (MOAA), and is treasurer of the non-profit "ITSO Fine Art" that supports Veteran healing through the arts.
Depending on when you joined TSP, there are different factors that will impact your decision on whether to keep or move your investment. To make an informed decision on what to do, you will want to consider several factors including costs, tax implications, purpose of investment, and your specific needs.
To learn more about how TSP works, and what you should do when you leave active service, watch the discussion below.