Thrift Savings Plan

60,000 federal employees have already done Roth conversions in the TSP.

And the option to do Roth conversions only got added early this year.

So a lot of people are taking up the TSP on their operative, allowing this, which is good news in some ways, bad news in others, which we'll dive into.

The question is, should you also do it? If you haven't already, should you take advantage of this opportunity? Let's go ahead and rock and roll.

Here's the deal.

What is your bracket? I don't care what your buddy's bracket is or the thousands of people that did the conversion, the 1.2 billion that moved to Roth, right? I don't care what they did.

I care about what you're doing because that's what matters for you.

How do you make sure you keep as much of your TSP as possible? For example, if you have, let's say, a million bucks in your TSP, how much of that do you keep? Let's say this represents your million bucks.

So yes, making those contributions and doing those catch-up contributions, it's not really pocket change.

it can mean you know several years of travel it can be building in a cushion for your health care it's not really the the question whether it matters it's a question of you know how do you capture it how do you put those numbers in so let's break down the numbers for 2026. if you have a 401k a 403b a government 457 plan or the Thrift Savings Plan, the base limit is $24,500.

If you're age 50 or older, that number adds an additional $8,000 for a total of $32,500.

If you're age 60 to 63, the super catch up is $11,250.

So that's if you were making $500,000 a year, two years ago, and then you stopped working since that time, that's called a life changing event.

But if you sold a house, cashed out a 401k, a TSP, an IRA, whatever the case may be, then unfortunately, that's not a life changing event.

You can always try and appeal it, but they're going to deny that one.

So unless there's, unless it's coupled with a 401k plus working, and that brought you over the 500,000 or 300,000 or 200,000 or whatever the case may be.

So again, there's one set of tax.

You're gonna have your pension, you're gonna have Social Security, and you're gonna have TSP or other investments that you have.

Now, if of course, you are spouse of a friend employee, then you'll just inherit a piece of that.

But long story short, there's generally just one set of things, whatever you've earned, or you inherited from your spouse.

So again, there's one set of tax.

You're gonna have your pension, you're gonna have Social Security, and you're gonna have TSP or other investments that you have.

Now, if of course, you are spouse of a friend employee, then you'll just inherit a piece of that.

But long story short, there's generally just one set of things, whatever you've earned, or you inherited from your spouse.

But knowing that you're going on this trip, if you go ahead and put the boarding pass in your wallet ahead of time, same sort of thing.

If you know that retirement is a journey that everybody wants to take, ideally, if you know that you're going to be doing that, what are you doing ahead of time to make sure that you can get to the gate and get through there and go enjoy that next chapter smoothly? If you don't have a plan in place, and as a reminder, your 401k, your TSP, your 403b, whatever you've been investing in this working world, that is not a retirement plan.

That's a retirement account.

It can be a major component of that plan, but that is not going to be the plan in and of itself.

just like the old pensions that were guaranteed.

So we want to help you create your own private pension out of your 401k, out of your TSP, or wherever you have those retirement dollars sitting so that you can rest assured that if you take a vacation, if you decide that you're gonna buy a boat, whatever you decide to do, that your necessities have already been accounted for and you know that you're on solid ground with that stuff.

And so that's what we love to do.

And I think that's where we began.

So-called TSP millionaires finished fiscal 2026 strong.

More than 224,000 Thrift Savings Plan participants closed out the fiscal year with an account balance above $1 million.

It's just below the record for the number of TSP millionaires, which was reached in the third quarter of fiscal 2026.

On average, TSP millionaires have been contributing to their accounts for about 27 years.