What is tsp

Teaspoon as a Measurement

In cooking and baking, a teaspoon (abbreviated tsp) is a volume measurement used primarily in English-speaking countries. One teaspoon equals approximately 4.93 milliliters or about 5 grams of water. This measurement is smaller than a tablespoon, with three teaspoons equaling one tablespoon. Teaspoons are commonly used for measuring small quantities of ingredients like spices, vanilla extract, salt, and baking powder. Precise measurements are especially important in baking, where ingredient ratios significantly affect outcomes.

The Thrift Savings Plan Overview

The Thrift Savings Plan is a retirement savings and investment plan for employees of the federal government and members of the uniformed services. Established by Congress in 1987, TSP provides federal workers with a retirement savings option similar to 401(k) plans offered in the private sector. The plan is administered by the Federal Retirement Thrift Investment Board, a government agency. TSP offers numerous advantages including low administrative costs, diverse investment options, and employer matching contributions.

TSP Investment Options

Participants in TSP can choose from several investment funds including the Common Stock Index Fund (C Fund), the Fixed Income Index Fund (F Fund), the International Stock Index Fund (I Fund), the Small Capitalization Stock Index Fund (S Fund), and the Government Securities Investment Fund (G Fund). Participants can also invest in the Roth TSP, which offers after-tax contributions and tax-free withdrawals. The Lifecycle Funds automatically adjust investment allocation based on a target retirement date.

TSP Contribution and Matching

Federal employees can contribute a percentage of their salary to TSP through payroll deductions. Employer matching is available for most federal employees, with the agency matching up to five percent of contributions. Military members have different matching rules but also receive employer contributions. Annual contribution limits align with Internal Revenue Service guidelines and increase periodically for inflation. Participants can also make catch-up contributions after age 50 for additional retirement savings.