Posted on Jun 7, 2019
The Automatic Enrollment Percentage in the TSP is Increasing : FedSmith.com
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I hate to say it but it's a good thing. Many did not take advantage of the full matching. I tried to preach this to other DOD civilians.
The Automatic Enrollment Percentage in the TSP is Increasing : FedSmith.com
Posted from fedsmith.comPosted in these groups: 
TSP
Retirement
TSP Retirement
Posted 5 y ago
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TSgt Joe C. PO3 Steven Sherrill CW3 Kevin Storm SSG (Join to see) SGM Steve Wettstein SMSgt Thor Merich MSG (Join to see) PO1 John Johnson MAJ Ken Landgren LTC Greg Henning PVT Mark Zehner MSG Tom Earley Alan K. SPC Mark Huddleston PO1 H Gene Lawrence SGT Elizabeth Scheck Sgt Deborah Cornatzer SSgt Boyd Herrst SPC Diana D. SFC George Smith
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Here is a perspective of TSP.
If a soldier is in the 10% tax bracket and makes $20,000/year, and invests 5% ($1000) of the money into TSP, The soldier will not be taxed for his investment so he will get $100 back from the IRS. His true cost of the investment is $900. With matching funds of 5% ($1000), the soldiers investment of $900 is now $2000/year. I am using an annual example because it would be difficult to break it down by months.
The future value after 20 years is $145,589 at 11%. If the soldier decides to stop investing after 20 years, the $144,267 will grow to $1,173,783. If the soldier contributes $2000/year for 20 more years, the value will be $1,446,435.
If a soldier is in the 10% tax bracket and makes $20,000/year, and invests 5% ($1000) of the money into TSP, The soldier will not be taxed for his investment so he will get $100 back from the IRS. His true cost of the investment is $900. With matching funds of 5% ($1000), the soldiers investment of $900 is now $2000/year. I am using an annual example because it would be difficult to break it down by months.
The future value after 20 years is $145,589 at 11%. If the soldier decides to stop investing after 20 years, the $144,267 will grow to $1,173,783. If the soldier contributes $2000/year for 20 more years, the value will be $1,446,435.
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