TSP Investment Funds

Servicemembers may allocate monthly contributions to any or all of the following funds. They also can transfer money in their account between funds.

    G Fund Government Securities Investment

      Invests in short-term, non-marketable Treasury securities.

        F Fund Fixed Income Index Investment

          Invests in a mix of U.S. government, corporate, and mortgage-backed bonds. Tracks the performance of the Barclays Capital U.S. Aggregate Bond Index.

            C Fund Common Stock Investment

              Invests in stocks of large and medium-sized U.S. companies. Tracks the performance of the Standard & Poor’s 500 Stock Index.

                S Fund Small Capitalization Stock Index Investment

                  Invests in stocks of small and medium-sized U.S. companies. Tracks the performance of the Dow Jones U.S. Completion Total Stock Market (TSM) Index.

                  I Fund International Stock Index Investment

                  Invests in international stocks of 21 developed countries. Tracks the performance of the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Stock Index.

                    L Fund Lifecycle

                      A mix of the five funds currently available, chosen based on the date you expect to need money at retirement.

                      For more information, visit the TSP website.

                      Roth TSP
                      In 2012, the TSP began offering a Roth TSP. The following are details of the new option.

                      • The Roth TSP combines the benefits of a traditional TSP with the after-tax benefits of a Roth 401(k).
                      • You do not get the benefits of tax-deferred savings (upfront tax deduction) on Roth TSP contributions as you do with traditional TSP contributions, but Roth TSP contributions and earnings on those contributions will grow federal income tax-free.
                      • The Roth TSP allows you to invest in the same funds as the traditional TSP.
                      • You pay no federal income taxes on withdrawals from the Roth TSP, as long as you are at least 59½ years of age and have been making Roth contributions for a minimum of five years.
                      • The Roth TSP functions like a Roth 401(k) plan, and unlike a Roth IRA, there are no income restrictions on contributions.
                      • The contribution limit for the Roth TSP is the same as the current contribution limit of $17,500 for the traditional TSP. This limit will remain the same between the Roth TSP and the traditional TSP.
                      • The Roth TSP, like a Roth 401(k), will not accept transfers from a Roth IRA.
                      • The Roth TSP, like a Roth 401(k), will require mandatory withdrawals at the age of 70½ .
                      • You have several options when separating from military service.
                        • Leave your money in the TSP.
                        • Withdraw all or part of your money.
                        • Transfer or roll over money to an IRA or eligible employer plan.
                        • If the servicemember for whom you care is medically retired and does not accept another job because of his or her disability status, he or she has the same options. The only difference is the tax treatment of withdrawals.

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