RETIREMENT SAVINGS PLAN
As a Soldier, you are eligible to participate in a 401(k)-type retirement savings and investment plan. The Thrift Savings Plan is sponsored by the federal government and offers the same type of savings and tax benefits that many corporations offer employees. An optional program, TSP enables you to contribute up to 100 percent of your pay each pay period, up to the limits established by the Internal Revenue Code. If you contribute to the TSP from your basic pay, you may also contribute from 1 to 100 percent of any incentive or special pay (including bonus pay) you receive. TSP contributions are either tax-deferred or tax-exempt, which means that the money you contribute is taken out of your pay before federal and state income taxes are withheld, a feature that regular savings accounts cannot offer.
For more information about the Thrift Savings Plan and the matching-fund program, please contact a recruiter or visit the official TSP website at http://www.tsp.gov/