TSP Full-Time Open Season Begins July 1

Current biannual Thrift Savings Plan “open season” investment-choice windows will end July 1, said Army Lt. Col. Janet Fenton, executive director of the Armed Forces Tax Council. TSP participants, she said, will be able to switch their retirement account options at any time. Under TSP, service members and civilians covered by the Civil Service Retirement System can contribute up to 10 percent of their paycheck to establish tax-free retirement accounts that grow from accumulated savings and investments in bonds, stocks and international funds. Employees covered by the Federal Employees Retirement System can contribute up to 15 percent in 2005. From 2006 on, no percentage limit will apply to any participants in TSP but an IRS dollar maximum (currently $14,000, next year $15,000) will remain. Another TSP change, also to be effective in mid-year, will be creation of a new fund that will automatically rebalance investments as market conditions change.