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TSP & Retirement Plans

As the year draws to a close, its time to check out any changes to your TSP.

Federal News Network Staff

December 30, 2008 1:25 pm

1 min read

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.

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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