The average balance for a FERS account holder—whether active or retired—rose in the five-plus years since year-end 2019 from about $151,000 to the current $198,000. Image: Vintage Tone/Shutterstock.com
By: FEDweek StaffThe amount on investment in the TSP has neared $1 trillion, a figure that while in itself is important mainly to fans of large round numbers also underscores the importance of the program to current and former federal employees and military personnel.
The total stood at $985 billion as of the end of January, according to data presented at this month’s meeting of the TSP governing board, following an increase of $22 billion last month. Barring a surge in the three stock funds in the late days of February, the TSP probably won’t exceed the $1 trillion mark before month’s end because stocks have been generally lower month-to-date.
TSP total asset counts are largely driven by performance of the C, S and I funds, which together hold about 61 percent of funds in what are now above 7.2 million accounts. Starting last year, money taken out through withdrawals and loans has outpaced new investments and loan repayments, a trend that continued in January with a net outflow of $350 million.
The program for example had ended calendar year 2015 with a total of $443 on investment, a figure that rose over the following five years to $710 billion and then to the $963 billion of year-end 2024.
The average balance for a FERS account holder—whether active or retired—rose in the five-plus years since year-end 2019 from about $151,000 to the current $198,000, while the average CSRS account holder’s balance rose from $161,000 to $224,000.
Will the current offer of “deferred resignation” have anything to do with the Thrift Savings Plan? The short answer is “no”; the choices a separated employee has with their TSP are the same, regardless of whether the separation is due to resignation or retirement.
Of course, you can leave your money in the TSP to access later, or you can choose to roll it over to an IRA or the retirement plan of a subsequent employer. If you’re rolling over, make sure that you make a direct rollover, as no taxes will be withheld. Most IRA custodians and representatives of employer plans are aware of this.
How do moving your money to an IRA and leaving it in the TSP compare? See, Your TSP and Separating from the Federal Government
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See also,
How Do Age and Years of Service Impact My Federal Retirement
The Best Ages for Federal Employees to Retire
How to Challenge a Federal Reduction in Force (RIF) in 2025
Should I be Shooting for a $1M TSP Balance? Depends…
