What NOT to Do with Your TSP: 8 Thrift Savings Plan Mistakes to Avoid

Many federal workers saving for retirement in TSPs get tripped up by these common pitfalls. To help maximize your own savings, make sure you steer clear of these eight mistakes.

A soldier holds a piggy bank.
(Image credit: Getty Images)

For federal employees, participation in the TSP (Thrift Savings Plan) can greatly increase your chances of financial security in retirement, yet some of the folks you work with aren’t making the most of their TSP.

By participating in your TSP, you can save part of your income for retirement through automated payroll deductions. You can also receive matching contributions from your agency, perform some forward-looking tax planning for retirement by considering using the Roth option, and potentially grow your money for the future tax-free. But to help maximize your TSP, you should avoid these eight TSP pitfalls:

Scott Tucker, Investment Adviser Representative
President, Scott Tucker Solutions

Scott Tucker is president and founder of Scott Tucker Solutions, Inc. (opens in new tab)  He has been helping Chicago-area families with their finances since 2010. A U.S. Navy veteran, Scott served five years on active duty as a cryptologist and was selected for duty at the White House based on his service record. He holds life, health, property and casualty insurance licenses in Illinois, has passed the Series 65 securities exam in 2015 and is an Investment Adviser Representative.