A thrift savings plan is a type of retirement investment program open only to federal employees and members of the uniformed services, including the Ready Reserve.
It is a defined-contribution plan that offers federal employees many of the same benefits that are available to workers in the private sector.
TSP benefits can include automatic payroll contributions and agency-matching contributions. Participants can choose to make tax-deferred contributions into a traditional TSP, which means the money that flows into the account will not be taxed until it is withdrawn.
Employees new to federal employment can roll over 401(k) and individual retirement account assets into a TSP and vice versa if they move to the private sector.