“One of the finest retirement plans in the world!”

1. “One of the finest retirement plans in the world!” Thrift Savings Plan Presented by Military & Family Personal Financial Counselor Updated April 2015

2. Agenda • Thrift Savings Plan overview • Enrollment and participation • Contributions • Roth TSP • Investment funds and options • Withdrawals and loans • Contact information

3. What is the Thrift Savings Plan? • Government-sponsored retirement plan • Open to all uniformed service members • Similar to 401(k) plan • Defined contribution plan

4. Why Sign Up? Pre-tax/tax-deferred options Choose your investment options Easy to contribute with automatic deductions Take your money with you if you transition… …or keep it in TSP until you retire

5. Enrollment and Your Account • Designate Beneficiary: Form TSP-3 • Distribute benefits: Form TSP-17 • Account # • Web password • ThriftLine PIN • Access through: • www.tsp.gov • ThriftLine • mypay.dfas.mil Ensure DFAS has current mailing address! • Personnel Office: Form TSP-U-1 Account Access Enrollment Beneficiaries

6. Making Contributions • Two types: • Regular (including automatic enrollment) • Catch-up (after age 50) • 1-100% of incentive/special/bonus pay with contribution from basic pay • Contributions from tax-exempt pay also tax-exempt • No matching option as of 2015

7. Contribution Limits • 1-100% Incentive, Special, Bonus Pay • Elective Deferral Limit ($18,000 in • (2015) • Traditional and Roth contributions Elective limit does not apply to traditional contributions made from tax-exempt pay earned in a combat zone

8. TSP Investments • What are my retirement needs? • What is my time horizon? • How much risk am I willing to accept? • How much risk am I able to accept? • How much diversification do I need?

9. Roth TSP • Contributions are after-tax • Withdrawals allowed IF: • Five (5) years have passed since Jan 1 of first contribution year, AND • You are 59 ½ or older, permanently disabled, or deceased.

10. Individual Funds Current as of October 2017

11. Lifecycle (L) Funds Current as of October 2017

12. L Fund Allocation Targets

13. Which Investment Approach? • Seeks best asset mix • Review on annual basis • Reallocate mix with age • Professionally determined mix • Lifecycle Fund • Based on Time Horizon Or… Self-Determined Fund Mix L Fund

14. How Much Can You Save with the TSP? 40 years from now* 30 years from now* 20 years from now* If you contribute… $30 per month $45 per month $120 per month $210 per month $240 per month *All figures assume a 6% annual rate of return compounded monthly 

15. After Your Military Service

16. In-Service Withdrawals Financial hardship or age-based ! ! ! ! Money is not repayable – when it’s gone, it’s gone! Age-based withdrawal subject to 20% income tax Hardship withdrawals also subject to income tax and10% age penalty Cannot contribute to TSP for six months afterward

17. Withdrawal Options • After age 59 ½ , your withdrawal options include: • Single “Lump Sum” Payment • Series of monthly payments • Annuity • Or— • Leave the money in TSP • Transfer the money to an IRA or an employer’s plan • Withdrawals must begin by age 70 ½ or the year you separate if you’ve reached 70 ½.

18. TSP Loan Program • General Purpose or Residential • $1,000 – either $10,000 or $50,000 (depending on TSP account balance) • Repayment must begin within 60 days of disbursement • $50 loan fee • Fixed interest rate (G Fund)

19. TSP Contact Information • Thrift Savings Plan Website: www.tsp.gov • TSP ThriftLines: • 1-TSP-YOU-Frst (1-877-968-3778) • 1-TSP-Thrift5 (1-877-847-4385) TDD • Personal Financial Counselor at your Military Family Center

20. Summary • Thrift Savings Plan overview • Enrollment and participation • Contributions • Roth TSP • Investment funds and options • Withdrawals and loans • Resources Questions?

21. Conclusion