03/26/2026
10 Thrift Savings Plan Mistakes that Federal Employees Should Avoid!
1. Opting out of the automatic TSP enrollment: Newly hired Federal employees are automatically enrolled in the TSP with 5 percent of their biweekly salary automatically deducted and contributed to the TSP starting with their first pay period in federal service. By contributing 5 percent of their salary, the employee receives from his or her agency a maximum TSP contribution match of 4 percent. A newly hired employee has the option to opt out of the automatic TSP enrollment. Opting out of the TSP is a mistake on a newly hired employee’s part and not a prudent financial move. This is because the earlier an employee starts contributing to the TSP, the longer the TSP money has to grow, tax-deferred for the traditional TSP and tax-free for the Roth TSP.
#2 tomorrow
