Enrollment, Contributions, and Share Price
History Explained
Research compiled by Nick Subich | Last updated: September 2026
If you have ever worked as a federal employee or served in uniform, chances are you’ve heard of the Thrift Savings Plan (TSP), a dedicated retirement plan created to benefit employees of the military and federal government. Standard civilian retirement plans like 401(k)s and IRAs can be complicated enough, and being involved with the TSP often adds an additional layer to your retirement strategies.
This guide gives you everything you need to know about the Thrift Savings Plan, including how you can enroll, what and when to contribute, and important considerations such as share price history.
What Is the Thrift Savings Plan?
The Thrift Savings Plan (TSP) is the defined-contribution retirement plan for federal civilian employees and members of the uniformed service.1 Essentially similar to a 401(k), but exclusively for federal employees and uniformed service members, the TSP is administered by the Federal Retirement Thrift Investment Board (FRTIB).1 The FRTIB is an independent agency, allowing them to keep administrative costs extremely low in comparison to other types of retirement plans.
If you have the ability to enroll in the TSP, you will find that there are two main contribution types, Traditional and Roth, as well as five central low-cost index funds.1 There are also a number of professionally-managed “Lifecycle” (L) funds, and your agency will often automatically contribute to and match your personal contributions.
Getting Started With the TSP
If you are a FERS employee, a CSRS employee, or a uniformed service member, here’s how you can get started with the TSP:
Eligibility and Enrollment
Depending on your position and agency, you may or may not be automatically enrolled into the TSP. Use the table below to understand whether you are automatically enrolled:
|
Employee Type |
Enrollment Status |
Notes |
| FERS Employee | Automatically Enrolled | Enrolled at a 5% contribution rate shortly after hire (can be changed at any time) |
| CSRS Employee | Not Automatically Enrolled | Must actively choose to contribute |
| Uniformed Service Member | Not Automatically Enrolled | Must actively choose to contribute |
If you wish to enroll in or contribute to the TSP, you must make all changes through your agency’s payroll system (i.e., myPay for the DoD). Changes cannot be made via tsp.gov, the TSP’s main website.
Setting Up Your Account
When enrolling in the TSP, follow these steps to create your account:
- 1. Confirm that you are officially enrolled. 2. Check your default contribution allocation (new enrollees default into the age-appropriate L Fund). 3. Create your My Account login at tsp.gov to view balances, change your investment mix, and update beneficiaries. 4. Designate a beneficiary. 5. Decide your contribution rate and Traditional vs. Roth split
It is very important to remember to designate a beneficiary when setting up your TSP account, because the designated beneficiary in your account legally overrides any stated beneficiaries in your will, so ensuring that it is accurate is vital to prevent funds from being misallocated.
Making Contributions
Once you are fully set up, you can begin making contributions to the TSP. Below, we outline exactly how much you should contribute, as well as the benefits of Traditional and Roth TSP plans and your contribution limits.
What To Contribute
If you are a FERS-covered employee, it is recommended that you contribute at least 5% of your basic pay to the TSP every pay period.2 This is because your agency will often match a certain percentage of your pay automatically when you contribute, so if you contribute less, you are essentially abandoning free money.2
Below is a table laying our standard agency automatic contributions and matching:
|
Your Contribution |
Agency Automatic |
Agency Match |
Total |
| 0% | 1% | 0% | 1% |
| 3% | 1% | 3% | 7% |
| 5% | 1% | 4% | 10% |
Regardless of whether you contribute anything to the TSP, your agency will contribute the automatic 1%. On the first 3% you contribute every pay period, you receive a dollar-for-dollar match, while you receive a $0.50-per-dollar match on the next 2%. While this might not seem like a lot, it adds up over time, so missing out on the benefits of a 5% contribution every pay period can be costly.
Traditional vs. Roth
As a part of TSP enrollment, you can contribute to both a Traditional retirement account and a Roth account. You are allowed to split contributions between the two however you wish, and many employees choose to contribute to both plans. Below are some important differences and considerations between Traditional and Roth plans:
|
Metric |
Traditional Plan |
Roth Plan |
| Tax Treatment Now | Pre-tax (reduces current taxable income) | After-tax (no upfront deduction) |
| Tax Treatment at Withdrawal | Taxed as ordinary income | Tax-free if qualified |
| Best Fit | Expect to be in a lower tax bracket in retirement | Expect to be in the same or higher bracket in retirement, or want tax diversification |
| Agency Match | Always deposited Traditional, regardless of your election | Always deposited Traditional, regardless of your election |
Contribution Limits
The TSP does place some limits on how much you can contribute. These limits, as of 2026, are outlined below:
|
Limit Type |
Limit Amount |
Notes |
| Elective Deferral Limit |
$24,500 | All Ages |
| Catch-Up Limit | Additional $8,000 | Ages 50–59 or 64+ (total cannot exceed $32,500) |
| Special Catch-Up Limit |
Additional $11,250 | Ages 60–63 (total cannot exceed $35,750) |
| Annual Additions Limit |
$72,000; $80,000 with standard catch-up; $83,250 for ages 60–63 |
Consists of your contributions, agency contributions, and catch -up |
In order to manage their contributions effectively, employees can use the Elective Deferral Calculator on tsp.gov to determine an exact figure based on their pay dates.
There are a few additional considerations that certain employees must take into account. Firstly, under SECURE 2.0, employees with prior-year FICA wages that exceeded $150,000 must make all catch-up contributions as Roth contributions, regardless of regular election.
Additionally, as of 2021, catch-up contributions no longer require a separate election, because spillover policies will automatically route contributions above the regular limit into catch-up status for eligible employees.
TSP Investment Fund Options
When you are enrolled in the TSP, you can disperse your contributions into any of the TSP’s five central funds, as well as into a number of Lifecycle funds that are built around them.6 Below, we break down each of the different TSP funds, what they invest in, and their risk-reward profiles:
|
Fund |
What It Invest In |
Risk-Reward Profile |
| G Fund | Short-term U.S. Treasury securities, specially issued to the TSP | Lowest volatility; no risk of loss of principal; returns similar to a stable-value or money-market option; slightly better long-term yield |
| F Fund | U.S. investment-grade bond index | Low-to-moderate risk; interest rate and modest credit risk; |
|
Fund |
What It Invest In |
Risk-Reward Profile |
| diversifier against equities | ||
| C Fund | Large-cap U.S. stocks | Higher volatility; core U.S. equity growth engine |
| S Fund | U.S. small- and mid-cap stocks | Higher volatility than C; adds diversification beyond large-cap |
| I Fund | International developed and emerging-market stocks | Higher volatility; currency risk; diversifies away from U.S.-only exposure |
| L Funds | Professionally managed mixes of the above funds, automatically rebalanced and shifted toward the G/F Funds as the target date approaches | Risk decreases automatically over time in five-year increments |
The five TSP funds are all passively managed index funds, meaning that their expense ratios are a fraction of the charge of most retail mutual funds.
Loans and In-Service Withdrawals
When enrolled in the TSP, you can take out loans and enact in-service withdrawals. However, it’s important to know that these reduce your invested balance and limit future growth, meaning that they should only be taken out as a last resort.
In terms of TSP loans, you are permitted to borrow from your own balance, both general purpose or residential, and can repay yourself with interest via payroll deduction. Importantly, failing to repay, such as after separation, will convert your outstanding balance into a taxable distribution, possibly incurring a 10% early withdrawal penalty if you’re under 59 ½ years of age.
In the event of financial hardship, you can make withdrawals from your TSP account so long as your hardship is documented.8 These withdrawals are taxable, and they may be penalized if you are under 59 ½ years of age.8 Unlike loans, withdrawn money leaves your account for good.
Once you turn 59 1⁄2, you are eligible to make age-based in-service withdrawals so long as you are still employed, and you do not need to demonstrate hardship to do so.
Withdrawals in Retirement or After Separation
Once you are separated (which can occur at any age) or retired, you have various withdrawal options under your TSP plan.7,8 These include:
- Installment Payments
- Partial or Full Lump-Sum Withdrawals
- Lifetime Annuities
- Leaving Your Balance in the TSP
- Rolling Over Into an IRA or Other Retirement Plan
If you choose to receive your funds in installments, you can opt for monthly, quarterly, or annual payouts, with either a fixed dollar amount or payments based on life expectancy. You can consult the TSP’s annuity provider if you are interested in setting up a lifetime annuity. If you opt to leave your balance in your TSP account and withdraw later, remember that your future withdrawals will be subject to Required Minimum Distribution rules once you reach RMD age.
If your balance is part of a Traditional account, it will be taxed as ordinary income when withdrawn, whereas qualified Roth withdrawals are tax-free. Required Minimum Distributions apply to all Traditional balances, but since SECURE 2.0, they no longer apply to Roth TSP balances during the original owner’s lifetime.
Other Important Considerations
Below are some other important considerations regarding your TSP plan:
- Fees: Expense ratios are dramatically lower than typical retail fund fees.
- Rollovers: Eligible balances from a former employer’s 401(k) or a traditional IRA can be rolled into the TSP.
- Beneficiary Designations: TSP beneficiary forms supersede your will, so update them
After marriages, divorces, or deaths. ● Court Orders and Debts: TSP balances can be subject to qualifying court orders and certain federal debts. ● Uniformed Services Specifics: Contributions can be made from base pay, incentive pay, special pay, and bonuses; combat-zone pay contributions are tax-free. ● Mutual Fund Window: Some participants can direct a portion of their balance into a separate window offering access to outside mutual funds. ● Annual Limit Changes: Contribution limits are set by the IRS each fall for the following year based on cost-of-living adjustments; check yearly for updates.
Share Price History
Below is a table listing the 2026 YTD Return and Expense Ratio of all five TSP funds:
|
Fund |
2026 YTD Return |
2026 Expense Ratio |
| G Fund | 3.1% | 0.034% |
|
Fund |
2026 YTD Return |
2026 Expense Ratio |
| F Fund | −0.5% | 0.035% |
| C Fund | 11.8% | 0.035% |
| S Fund | 16.0% | 0.051% |
| I Fund | 20.3% | 0.048% |
References
- Home. (2026, January 26). The Thrift Savings Plan (TSP). http://tsp.gov/ 2. FERS information. (n.d.). U.S. Office of Personnel Management.
https://www.opm.gov/retirement-center/fers-information/ 3. Guina, R. (2026, June 18). 2026 Thrift Savings Plan Contribution Limits and Rules –
deployed contributions, agency match and more. The Military Wallet.
https://themilitarywallet.com/thrift-savings-plan-contribution-limits/ 4. 2026 TSP contribution limits. (2026, February 4). The Thrift Savings Plan (TSP).
https://www.tsp.gov/bulletins/25-3/ 5. Feba. (2026, August 19). 2026 TSP Contribution Limits: Spillover Method & SECURE
2.0 Rules Explained. Federal Employees Benefit Association.
https://febabenefits.org/blog/2026-tsp-contribution-limits-spillover-method-secure-2-0-
rules-explained/ 6. TSP. (2026). Fund information. Lifecycle Funds, 1.
https://www.tsp.gov/publications/tsplf14.pdf?TSP-LF-14 7. TSP Loans. (2026, January 30). The Thrift Savings Plan (TSP). https://www.tsp.gov/tsp-
loans/ 8. Thrift Savings Plan. (n.d.). Financial hardship withdrawals. In Thrift Savings Plan.
https://www.tsp.gov/publications/tspbk12.pdf 9. Share price history. (2023, August 30). The Thrift Savings Plan (TSP).
https://tsp.gov/share-price-history/
