By James White
Internet Editor
FederalNewsRadio
As 2008 draws to a close, you might be wondering about your retirement plans, especially, how is your TSP holding up?
Tom Trabucco, director of External Relations at the Thrift Savings Plan, reminds you that there are limits to your TSP fund, and the agency is sending a letter detailing what those limits are to plan members:
What we do is we send an annual participant statement to all participants. That will be going out at the end of January, along with a message from the executive director, who will be advising people about the new limits, which is something people should keep in mind, as they look forward even this week. Next year the elective deferral goes to $16,500. And the catch-up contribution for folks age 50 and over goes to $5,500 dollars.
Trabucco noted that the TSP had to endure some historic losses in 2008.
It will be a significant loss for people who are fully invested, certainly in the I-fund, we’re down 44 percent. So, if you were 100 percent invested in the I-fund, and you had a couple hundred grand in there, now you’re down to about $110,000.
Trabucco says how you invest depends on your tolerance for risk and your time horizon. He pointed out that over time, the markets will generally give you a better return on your TSP.
For More Information: Go to Thrift Savings Plan
(Copyright 2008 by FederalNewsRadio.com. All Rights Reserved.)
Copyright
© 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.