Following Exceptional 2025 TSP Results, TSP Investors Raise I Fund Investments
How TSP Investors Reacted to Performance in 2025 In December, Thrift Savings Plan (TSP) investors began moving funds into the I Fund, with around $5.7 billion transferred in that month alone. Conversely, about $2.4 billion was shifted from the G Fund, roughly $1.6 billion from the C Fund, and about $2.3 billion from the S […]
Bigger TSP Balances Lead to Higher RMDs in 2026
The U.S. stock market continued its impressive run in 2025, logging substantial gains for the third year in a row. Specifically, U.S. stocks rose by 17% based on price-to-earnings ratios. This follows increases of 23% in 2024 and 24% in 2023. Noteworthy milestones include: The S&P 500 nearing 7,000. The Dow Jones Industrial Average surpassing […]
Roth Conversions Are Coming to the TSP; Understanding Why This Could Be More Harmful Than Beneficial for Many Federal Workers
Beginning January 28, 2026, the Thrift Savings Plan (TSP) is set to allow participants to finally make use of a feature called loss conversion. This means they can transfer funds from traditional (pre-tax) TSP balances into Roth TSP options. For many federal employees, this adjustment has been a long time coming. Roth conversions (RC) are […]
FRTIB Addresses Feedback and Finalizes Regulations for TSP Roth In-Plan Conversions
The Federal Retirement Savings Investment Board (FRTIB) has announced a final rule effective January 28, 2026, which introduces the option for in-plan conversions to a Roth Thrift Savings Plan (TSP). This long-awaited change allows TSP participants to switch their funds from traditional TSP accounts—those with pre-tax and tax-exempt balances—to Roth accounts, which are funded with […]
TSP Performance Surges in 2025 With One Rising 32%: Record Return for a TSP Fund?
Remarkable TSP Performance in 2025: Is This the Highest Ever? In 2025, all TSP funds saw an increase in annual revenue. This is a positive development for TSP investors, especially since it marks the second consecutive year of profits across the board. The I-Fund was launched in 2025, boasting an impressive annual return of 32.45%, […]
Is the TSP Emergency Withdrawal Act a Help or a Future Danger?
New legislation aims to broaden the scenarios in which federal employees can withdraw from their Thrift Savings Plan (TSP) penalty-free following their departure from federal service. The bill, known as Frugal savings plan emergency withdrawal method (HR6929), was put forward by Congresswoman Eleanor Holmes Norton (D-DC). It would permit recently separated federal employees to withdraw […]
Roth In-Plan Conversions for TSP to Begin in Late January 2026
New Roth In-Plan Conversion Options for TSP Participants Starting in late January 2026, participants in the Thrift Savings Plan (TSP) and their spouse beneficiaries will have the option to convert funds from traditional TSP accounts to Roth accounts. This process is known as a “Roth in-plan conversion.” When converting from a traditional to a Roth […]
Wise investing involves understanding when to avoid fully utilizing your TSP.
Investment Strategies for TSP Terry Garton We often discuss TSP investments, assuming everyone will make the largest contributions. However, that’s not always the best approach for each individual. Let’s explore how people might consider their investment levels for TSP more thoughtfully. Artstein Let’s consider three scenarios: those nearing retirement, those in the middle of their […]
The performance of TSP funds during this time of market fluctuations and the actions investors are taking with their money
Stock Market’s Bumpy Start and Recovery in 2025 The stock market began 2025 on a shaky note but has shown some signs of recovery. For those with a little extra cash, it raises the question of how to approach the market’s fluctuations. Investors should understand that stock markets inherently experience ups and downs. Because of […]
Using QLACs to Reduce TSP Required Distributions and Establish Guaranteed Income
In 2014, the US Treasury introduced a longevity pension agreement called a Qualified Longevity Annuity Contract (QLAC), which qualifies as a type of deferred income pension. QLACs can be acquired through various retirement accounts like 401(k)s, 403(b)s, SEP IRAs, and traditional IRAs. However, it’s important to note that QLACs aren’t available through the Thrift Savings […]