Is the Thrift Savings Plan A 457 B plan?

Is the Thrift Savings Plan A 457 B plan?

For example, 457(b) plans are available for state and local government workers while federal government workers have access to Thrift Savings Plans (TSP). Generally speaking, TSPs and both 457 plans are actually very similar to a 401(k) because they allow a certain percentage of wages to go into a tax-deferred pot.

What is a 457 B savings plan?

A 457(b) is a type of tax-advantaged retirement plan for state and local government employees, as well as employees of certain non-profit organizations. While the 457(b) shares a few features with the more familiar 401(k) plan, it also has some unusual features.

What type of account is a Thrift Savings Plan?

The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.

What happens to my 457 B when I quit?

Once you retire or if you leave your job before retirement, you can withdraw part or all of the funds in your 457(b) plan. All money you take out of the account is taxable as ordinary income in the year it is removed. This increase in taxable income may result in some of your Social Security taxes becoming taxable.

Is TSP a 457 plan?

The alternatives for government employees are known as 457 (b) plans for state and local government workers and Thrift Savings Plans (TSPs) for federal government workers . For highly compensated non-profit workers, the alternative is a 457 (f) plan . Independent contractors are able to participate in either type of 457 plan.

Is TSP a 401k or 403B?

TSP is regarded as a 401k plan by the IRS and contributions are aggregated weith contributions to a 401k and 403b plan.

When can I withdraw from TSP?

In-service withdrawals. As a TSP participant, you may be eligible to take a one-time, age-based withdrawal from your TSP upon reaching age 59½. All or a portion of your vested account balance may be withdrawn at that time.

What is the maximum TSP percentage?

The minimum percentage for TSP contributions is 1 percent and the maximum is 100 percent. However, there is a maximum TSP contribution dollar amount mandated by Internal Revenue Code. This IRC limit for TSP contributions is $18,000.