The United States military maintains a government supported savings plan for the benefit of its Servicemembers. This is called the TSP, or Thrift Savings Plan, and it is designed for usage of Servicemembers to benefit from and to use. The United States Government and Congress created it for members of the Armed Forces of the United States. The program has investors across all 5 of the United States Armed Forces, and they amount to several million strong.
The TSP plan is one that has been set up to benefit Servicemembers and military personnel and their families. The actual TSP operation is a lot like a civilian based 401 (k) retirement type savings plan. The benefits for the Servicemember investor from the TSP program are linked to the amount that is set aside by the individual Servicemember. This amount is then matched by the service or agency that the Servicemember belongs to. The amount of assets as of the month of July 2007, the Federal Thrift Savings plan has 224 billion dollars in assets with nearly 3.77 million individual and group investors. The TSP Plan is an insured type of savings program that features matching funds that can be very lucrative to participate in. The TSP program is nice because there is not a lot of record keeping to be done, the program does it and all records are kept for you. The matching contributions are made by the Federal Government to match the automatic type contributions to the overall savings plan. You can contribute any amount of your basic pay up to the amount limited by the IRS. The bank takes care of all the record keeping and this is a fantastic method for retirement savings, and the taxes that a person owes is from the tax bracket that you will be in at retirement age. This is an advantage because when a person retires you will likely be in a significantly lower tax bracket than when you put the money into the TSP program.
The retirement plan is a tax deferred plan administrated by the Federal Retirement Thrift Investment Board. It is a plan that gives the average Servicemember a method of retirement savings that is easy to participate in, and one that multiplies the retirement savings for the day when the Servicemember retires.