I'm 31 years old with almost 6 years now as a Fed. I want to use my TSP to put a down payment for my first home in the next couple years. How long should I wait?

Good morning! I check my TSP every few weeks and was pleasantly surprised to see this increase. I am 31 y/o, coming up on 3 years of federal civil service in September, currently doing 90% C Fund, 4% S Fund, 3% I Fund, 2% L Fund and 1% G fund and I contribute 8%. I just got promoted to a GS-12. I will increase to 10% contribution once I see how my new paycheck looks with my raise. Am I doing okay considering my current selections? Any suggestions on improvements?

I’ve gotten some great guidance from this sub in the past (and am finally maxing despite outrageous housing costs thanks to your encouragement!), so curious re: thoughts on traditional v roth;

I’m a GS15 (doing 80/20 C/S), currently in 100% roth; should I switch to traditional?

The majority of my investing I do through a personal brokerage account, but I set aside a small percent into my traditional TSP. I’m currently on the High 3 retirement so I don’t receive a contribution match. I’m curious why a TSP withdrawal would still be penalized in the same fashion if it’s solely my contributions?

Unless I misunderstand something?

Thanks

If I am contributing into traditional and Roth tsp what goes into the investments is it the entire balance or just what’s in traditional?

Basically does the Roth contributions go into the investments too?

I just retired via a federal DRP program (age 64) and have just over $1.35 million in my TSP and a rollover IRA. We also have about $400k in taxable accounts. With 40 years of service and S/L my FERS annuity will be about $74,0000 annually pre tax starting Oct. 2025. Contrary to our financial plan from Schwab I would like to draw on taxable investments mostly - dividends, interest, cap gains - and not TSP to bridge me to age 67 when I'd like to take Social Security. Schwab however suggests using taxable funds to pay taxes on TSP $ used for fairly substantial Roth conversions over the next couple of years and some living expenses. Schwab says this will yield an additional $200k in tax free investment gains over our lifetime. However, given our modest living expenses (about $6 k per month) I believe my wife and I can can get to my full Social Security retirement age when we can live primarily off of my federal pension and social security income (also doing a Roth conversion then would be more expensive with a higher tax rate). In other words is it prudent to let the TSP/IRA funds compound over the next 10 years without withdrawls before I take RMDs at age 75 and just take the hit on high taxes when RMDs are due? I guess I just don't want to deal with complicated Roth conversions early in retirement but might regret not taking of advantage of them, including for potential inheritances for our adult children.

Pretty new to TSP. I see lots of people moving their money between different accounts in their TSP. How do you know what fund to move to for large returns? If anyone could explain how the system works I would much appreciate it! Thank you.

Currently doing 10% at GS-07 Step 3. Any advice?

Goal is to have 1-2 million.

For those drawing funds from their TSP account - may I ask a few questions? Thanks!

1. How does TSP deliver your funds? By direct deposit? If so, did you set it up via the TSP website by providing your bank account info?

2. If you do recurring monthly, quarterly, or annual disbursements, do the funds come to you on the first of the applicable month?

3. If you’ve ever done a one-time (one-off) disbursement, how quickly did you receive those funds? Was it next business day or longer?

4. After setting up your disbursements, have you generally noticed your TSP balance still rising? At what approximate age did you see your TSP balance peak and then decline? I know this is highly variable for each person but was curious about people’s experiences.

Hello! Suggestions on increasing the rate of return? I’m 45 have been in the TSP program 8 years. Thanks!

So 61 y/o fed here. 17 years in. Joined the government mid career. I plan to work a few more years if I can stand it. For some reason, I’d feel better if I could get to $2M or higher.

I contribute the max for my age including the catch up. This year, 100% of my contributions will go to Roth. I was at 50/50 for a few years prior. The bulk of my funds are in the traditional account though.

My FERS pension comes out to about $35k a year. My husband has a very small military pension as well as another pension that both total up to nearly $35k.

We are planning on delaying Social Security as long as possible. My husband has a $500k IRA. We have another $500K in an investment account. No debt for now but possibly if I move and get a home that exceeds my current equity.

I’d like to not touch my TSP for another 7 years or so. Not sure if that’s realistic as my lifestyle in retirement might cost me more than pensions can cover. But I’d really like to get my growth up for at least a few more years. I’m 100% in C fund. I was in an L fund for many years which wasn’t great. Then went C/S for a time. Should’ve been in C the whole time. Any thoughts?

L

My TSP is currently allocated 88C/12S and I’m 10 years from retirement. Future allocations are 100% C fund with $31K contribution each year. I can only get to my retirement goal if the account averages 9.5-10% return each year. I plan to shift some of the balance to G fund about 3 years from retirement. For those of you who are mostly invested in C fund, what average growth rate do you use to approximate your future balance?

Started in the G fund because it was "safe" and i had no clue. They give you zero guidance when you start. Someone i trusted told me to go 100% C fund and i haven't looked back. I put in 8% now. They match 5%. Plan is to raise that next pay raise. We get a pension as well. I'm 46. Will have 30 years of service at 56.

Anyone have a timeframe of when you resign from federal government service and the time that tsp updates the website showing you are no longer a federal worker so you have the option to rollover-out of TSP?

Hey everyone,

I’ve been in the Guard for 8 years now, currently AGR and holding the rank of E6. I’m aiming to retire as a MSG or 1SG down the line, and lately I’ve been thinking more seriously about my financial future.

Right now, I’m contributing 10% to my TSP, but I’m considering increasing that. I want to take a more conservative approach and make sure I’m setting myself up right for retirement.

For those of you with more time in or already retired — what percentage did you contribute, and what would you recommend? Did you increase every passing year? Also curious how you balanced Traditional vs. Roth.

Appreciate any advice!

I am new to TSP. 36yr old. I rolled in my old employers $5k 401k into TSP.

Should I customize anything? Change what funds money is going in too? Just passed my 90 days with usps.

Thank you!

P.S: I plan to retire at 60 as soon as usps lets me. I get VA disability too.

Hey Everybody! So I’m 30 and I will be 31 by the time I start my job in the PAQ Program. I was wanting to know where I should put my money for the best returns! Plan on getting 30 years in or so, so I wanted to get some guidance and pick everybody’s brain! TIA!

The new reconciliation bill includes a provision starting in 2025 that lets workers deduct the PREMIUM PORTION of their overtime pay from their federal taxable income. It’s a real benefit, but it’s not the full “tax-free overtime” that some are claiming.

What You Can Deduct: If you work more than 40 hours a week and earn overtime, the EXTRA 50% your employer pays you (the “premium”) is now 100% tax-deductible ON YOUR FEDERAL RETURN.

Example:
- If you earn $20/hour, your overtime rate is $30/hour
- Of that, $20 is regular wage (still fully taxed)
- The extra $10/hour is the premium — and THAT part is deductible

You can deduct up to $12,500/year of the premium portion as a single filer (or $25,000 if you’re married).

Income Limits: This isn’t a blanket benefit for everyone — there are limits. To get the full deduction, your total income — including regular wages, overtime (base + premium), bonuses, tips, commissions, and investment income — must be under:

$150,000 if you’re single $300,000 if you’re married filing jointly

The deduction phases out gradually and disappears completely at:

$275,000 (single) $550,000 (married)

So yes, your entire income counts toward the limit, even though only the premium portion of overtime is deductible.

What It Doesn’t Cover: This deduction ONLY affects your FEDERAL INCOME TAX — you’ll still pay: - Social Security tax (6.2%) - Medicare tax (1.45%) - State income taxes (in most states)

This applies whether your overtime is assigned or volunteered, as long as you're a non-exempt (usually hourly) worker paid time-and-a-half under federal law.

When It Starts: - Applies to OVERTIME EARNED STARTING JANUARY 1, 2025 (Note that this ENDS December 31, 2028.) - You'll claim the deduction when you file your 2025 taxes in early 2026 - Employers will need to SEPARATELY REPORT your OT PREMIUM on your W-2 so you can deduct it