Changes Coming to the Thrift Savings Plan in 2022
New TSP App
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services, including the Ready Reserve. The TSP was established by Congress in the Federal Employees’ Retirement System Act of 1986 and offers the same type of savings and tax benefits that many private corporations provide their employees under their 401 K plans.
There are some updates coming to the TSP that will help improve the user experience. This is all a part of the Federal Retirement Thrift Investment Board’s Converge Program. This program hopes to modernize the TSP.
New Mobile App for TSP Platform
There will be an app that is coming out in mid-2022, that will make access to the TSP platform even easier. This mobile app will allow users to manage investments and contact the agency for assistance through their mobile devices. Users will also be able to use added security measures, facial recognition, and other methods to increase security. In addition to the mobile app, there will be new tools such as a virtual assistant and virtual chat.
New Mutual Fund Window Opening
There will also be a mutual fund window opening for the TSP. TSP participants will be able to search to see what they want to invest in. The window will feature over 5,000 mutual funds. TSP users will need to have at least $40,000 in their TSP accounts, and the minimum initial transfer will be $10,000. TSP users won’t be able to exceed 25% of their TSP index fund balance.
Mutual fund offerings were authorized for the TSP back in 2009 by Congress but had been held up because of regulatory and technological challenges.
Look for the TSP app and other changes and additions this summer. They seem to be able to make the user experience a little easier and offer some much-needed updates to the program.
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- Service Members Now Have More Options to Invest in TSP
- The 10 Best Financial Benefits for Members of the Military and Their Families