TRAINEE GUIDE - Recruit Training Command - The US Navy

TRAINEE GUIDE A-950-0001
A. Introduction
OUTLINE SHEET 2-03-1
THRIFT SAVINGS PLAN (TSP)
The Thrift Savings Plan (TSP) is important because it can help you save
money for retirement.
B. Enabling Objective(s):
27.1 Identify the definition and purpose of the Thrift Savings Plan (TSP).
27.2 Explain the characteristics of the Thrift Savings Plan.
27.3 Identify the Thrift Savings Plan investment funds and their
characteristics.
C. Topic Outline
1. Introduction
2. Definition and Purpose of the Thrift Savings Plan (TSP)
a. Definition--An optional savings and __________ plan open to
military and federal civilian personnel.
b. Purpose--Provides ____________ income to supplement payments from
the Navy and federal retirement systems.
3. Characteristics of the Thrift Savings Plan
a. Offers participants the same type of savings and tax benefits
that many corporations offer under 401 (k) retirement plans.
b. TSP contributions and earnings are not taxed until the funds are
withdrawn.
c. Pay roll deduction must be used to contribute into TSP.
d. As of 2006, you may contribute a minimum of one percent of your
base pay up to a maximum of $15,000 per year
e. You may also contribute from:
(1) Bonuses, for example:
(a) Selective Reenlistment Bonus (SRB)
(b) Career Status Bonus (CRB)
(2) Special pay, for example:
(a) Flight
(b) Submarine
(c) Special Duty Assignment
f. Existing retirement accounts may be transferred or rolled over
into the TSP.
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