7/28/2019 TSP Highlights April 2013

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April 2013

IGHLIGHTSH

TSP Website: ThriftLine: 1-TSP-YOU-FRST (1-877-968-3778) TDD: 1-TSP-THRIFT5

www.tsp.gov Outside the U.S. and Canada: 404-233-4400 (1-877-847-4385)

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You Ask. We Answer.

The Thrit Savings Plan (TSP) receives a lot o questions rom participants who want to learnmore about how they can better manage their retirement savings. Although we dont haveenough room here to answer all o your questions, the ollowing Qs and As are meant to pro-vide the basic inormation you need to get the most out o your TSP account.

How do I get a copy o my account number/ThritLine PIN/Web pass-word sent to me? Use the My Account section o the TSP website (www.tsp.gov) or call theThritLine (1-TSP-YOU-FRST) and talk to a Participant Service Representative (PSR) to requestthat your account number/PIN/password be sent to you. You should receive it within 10 days.

How do I change my address? It is extremely important that you check to make surethat the TSP has your correct mailing address on le beore you request a loan, withdrawal, or acopy o your account inormation. I your address is incorrect and you are still employed by theFederal Government, submit your correct address to your agency or service, and ask it to updateyour address with the TSP. I you are separated rom service, you can change your address in theMy Account section o the TSP website, call the ThritLine and talk to a PSR, or submit FormTSP-9, Change in Address or Separated Participant. Form TSP-9 is available on the TSP website

or by calling the ThritLine.

How do I designate benefciaries to receive the money in my accountwhen I die? Complete Form TSP-3, Designation o Beneciary. This orm is available on theTSP website, rom your agency or service, or by calling the ThritLine.

Why cant I download the fnancial data rom my TSP account into fnan-cial spreadsheet programs? The TSP has looked into the easibility o providing such aservice, but discovered that it would come at too high a cost to participants. The TSP will revisitthis issue periodically to see i the situation changes.

I I make both traditional and Roth contributions, how are my Agency

Matching Contributions calculated? FERS employees who contribute their ownmoney to the TSP receive Agency Matching Contributions. I you make both traditional andRoth employee contributions, the total percentage (up to 5%) o pay you contribute will beused to calculate your Agency Matching Contributions.

Does the Internal Revenue Code (IRC) elective deerral limit apply to mytraditional and Roth contributions separately?The IRC elective deerral limit, themaximum amount o employee contributions that you can make in a calendar year ($17,500 in2013), applies to the combined total o your traditional contributions and Roth contributions.There is no separate limit or each type o contribution.

THRIFT SAVINGS PLANYOUR PLAN YOUR FUTURE

Its Always the RightTime to Save

"Start where you stand, andwork with whatever toolsyou may have . . ."

Napoleon Hill, author oThink and Grow Rich

No matter where you are inyour career, NOW is the timeto save or your retirement.

I you just started your career,you may only be able tocontribute a small amountto your TSP account. Thatsokay, but the sooner yousave, the longer you have oryour money to grow.

I you are in mid-career, con-sider investing some o youradditional pay in the TSPeach time you get a raise,promotion, or step increase.

I you have waited until laterin your career to save, youstill have time. Catch-up con-tributions allow participantswho are age 50 or older tomake additional contribu-tions (up to $5,500 in 2013)that are permitted to exceedthe Internal Revenue Code

(IRC) elective deerral limit($17,500 in 2013).

Your TSP account couldmean the dierence betweenan enjoyable retirement anda stressul one. You can takethe right steps to ensure thatyou can enjoy your lie ateryou stop working.

7/28/2019 TSP Highlights April 2013

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Rates of Return

L2050

L2040

L2030

L2020

LIncome

GFund

FFund

CFund

SFund

IFund

Monthly 2013

JanFeb

4.63%0.56

4.11%0.54

3.56%0.49

2.83%0.41

1.10%0.27

0.13%0.13

0.56%0.51

5.18%1.36

6.96%1.00

4.45% 0.99

Annual 2003 2012

20032004200520062007

20082009201020112012

15.85

16.537.36

31.5325.1913.89 0.9614.27

15.007.14

27.5022.4812.48 0.3112.61

13.726.87

22.7719.1410.590.41

10.42

7.595.56

5.098.575.742.234.77

4.11%4.304.494.934.87

3.752.972.812.451.47

4.11%4.302.404.407.09

5.455.996.717.894.29

28.54%10.824.96

15.795.54

36.9926.6815.062.11

16.07

42.92%18.0310.4515.305.49

38.3234.8529.06 3.3818.57

37.94%20.0013.6326.3211.43

42.4330.047.94

11.8118.62

The returns or the TSP unds represent net earnings ater deduction o administrative expenses and, in the cases o the F, C, S, I, and L Funds, ater deductiono trading costs and investment management ees. Additional inormation about the TSP unds, the related indexes, and their respective 1-, 3-, 5-, and 10-yearreturns can be ound in the TSP Fund Inormation sheets on the TSP website.

The Liecycle unds, which are invested in the individual TSP unds (G, F, C, S, and I), were implemented on August 1, 2005; thereore, the frst annualreturns are or 2006.

The Government Securities Investment (G) Fund; the Fixed Income Index Investment (F) Fund; the Common Stock Index Investment (C) Fund; the SmallCapitalization Stock Index (S) Fund; the International Stock Index Investment (I) Fund

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Printed on Recycled PaperFPI-PET

I am a uniormed services member. Can Imake Roth catch-up contributions rom tax-exempt pay that I receive while serving in acombat zone?Yes. I you are age 50 or older, you canmake Roth catch-up contributions rom tax-exempt pay.However, you cannot make traditional catch-up contribu-tions rom tax-exempt pay.

What is the dierence between a fnancial

hardship withdrawal and a TSP loan?A nan-cial hardship withdrawal permanently reduces your TSPaccount by the amount you withdraw. You must also paytaxes on the taxable portion o the withdrawal. Ater youmake a nancial hardship withdrawal, you cannot makeemployee contributions to your TSP account or 6 months.When you take a TSP loan, you borrow rom your TSPaccount. You must repay your loan (with interest) generallythrough payroll deductions. You pay no taxes on your loanunless you ail to repay it. You can continue making contri-butions to your TSP account as you are repaying the loan.

What is the dierence between a TSP lieannuity and TSP monthly payments? A TSP lieannuity is an insurance product that provides a monthlybenet paid to you or lie no matter how long you live. TheTSP annuity is notthe basic annuity that you will receiverom the Oce o Personnel Management (OPM) whenyou retire as either a FERS or CSRS employee, or the retiredpay that you receive as a member o the uniormed services.

I you choose an annuity, it will be purchased rom the TSPannuity provider. Once your annuity has been purchased, itcannot be changed or cancelled. I you choose to withdrawyour TSP account as a series o monthly payments, you caneither receive a xed dollar amount each month, or ask theTSP to compute your payments based on your lie expec-tancy. Fixed dollar amount payments will end when themoney in your account runs out. In other words, you takethe risk that your payments will end beore you die. With

TSP-computed payments, you will receive a steady streamo monthly payments based on IRS lie expectancy tables.When you die, any remaining balance in your TSP accountwill be paid to your beneciary(ies).

I have more questions about the TSP. Wherecan I get more inormation?The TSP website is theplace where you can get the most up-to-date inormation.You can download all o the TSPs publications (e.g., orms,booklets, leafets), use online interactive tools (wizards)to complete withdrawal and loan orms, and play aroundwith online calculators to nd out how much you shouldsave, how contributions will aect your pay, and what with-

drawal options suit your needs. You should also check outour YouTube channel (www.youtube.com/TSP4gov) whereyou will nd detailed inormation about topics to consideras you save or retirement. I you wish to speak to some-one about specic issues related to your account, you canalways call the ThritLine and talk to a PSR.