Calculate your potential TSP (Thrift Savings Plan) contributions based on your salary and chosen contribution percentage.
Understanding TSP Contributions
The Thrift Savings Plan (TSP) is a retirement savings and investment plan established by the U.S. federal government. It offers federal employees and members of the uniformed services the same benefits that many private-sector employees receive from 401(k) plans. The TSP allows participants to save and invest the money they need for retirement.
How TSP Contributions Work
TSP contributions are typically made as a percentage of your base salary. There are two main types of contributions:
Traditional TSP: Contributions are made on a pre-tax basis. This means your taxable income is reduced in the year you make the contributions. Your money grows tax-deferred, and withdrawals in retirement are taxed as ordinary income.
Roth TSP: Contributions are made on an after-tax basis. Your taxable income is not reduced in the year of contribution, but your money grows tax-free, and qualified withdrawals in retirement are also tax-free.
The calculator above estimates your annual contribution amount based on your salary and the percentage you choose to contribute. The calculation for the annual contribution is straightforward:
This $6,000 represents the total amount you would contribute from your salary over the course of a year. This amount would be deducted from your paychecks throughout the year, either before taxes (Traditional TSP) or after taxes (Roth TSP), depending on your selection.
Contribution Limits and Matching
It's important to be aware of the annual IRS contribution limits for TSP. These limits are updated each year. Additionally, the TSP offers matching contributions from the government. Typically, the government matches 100% of your contributions up to 3% of your basic pay and 50% of your contributions on the next 2% of your basic pay (for a total potential match of 5%). This calculator does not factor in government matching, which is an additional benefit on top of your own contributions.
Why Use a TSP Calculator?
A TSP calculator is a valuable tool for several reasons:
Budgeting: It helps you understand the financial impact of your TSP contributions on your take-home pay.
Goal Setting: It allows you to project how much you can save annually towards retirement by adjusting your contribution rate.
Maximizing Benefits: Understanding your contribution potential can help you decide whether to contribute enough to get the full government match.
Financial Planning: It's a simple way to get a quick estimate for your overall retirement savings plan.
By inputting your annual salary and desired contribution rate, you can quickly see how much you'll be saving each year for your retirement through the TSP.
function calculateTspContribution() {
var annualSalaryInput = document.getElementById("annualSalary");
var contributionRateInput = document.getElementById("contributionRate");
var resultDiv = document.getElementById("result");
var annualSalary = parseFloat(annualSalaryInput.value);
var contributionRate = parseFloat(contributionRateInput.value);
if (isNaN(annualSalary) || isNaN(contributionRate)) {
resultDiv.innerHTML = "Please enter valid numbers for salary and contribution rate.";
return;
}
if (annualSalary < 0 || contributionRate 100) {
resultDiv.innerHTML = "Please enter positive values for salary and a contribution rate between 0 and 100.";
return;
}
var annualContribution = annualSalary * (contributionRate / 100);
// Format to two decimal places for currency, but display as integer if whole number
var formattedContribution = (annualContribution % 1 === 0) ? annualContribution.toFixed(0) : annualContribution.toFixed(2);
resultDiv.innerHTML = 'Your estimated annual TSP contribution is: $' + formattedContribution + '';
}