Define: Federal Retirement Thrift Investment Board

The FRTIB is an independent agency responsible for administering the Thrift Savings Plan (TSP), which is a retirement savings and investment plan for federal employees and members of the uniformed services.

The FRTIB is overseen by a five-member board, appointed by the President and confirmed by the Senate. The board members are responsible for managing the operations and investments of the TSP.

Yes, federal employees are eligible to contribute to the TSP. They can contribute a portion of their salary on a pre-tax or after-tax basis, subject to certain contribution limits set by the Internal Revenue Service (IRS).

Yes, federal employees who are covered by the Federal Employees Retirement System (FERS) are eligible for agency automatic contributions and matching contributions. The agency automatic contributions are made regardless of whether the employee contributes to the TSP, while the matching contributions are based on the employee’s contributions.

The TSP offers a variety of investment funds, including government securities, corporate bonds, and stock market index funds. The specific allocation of funds depends on the investment strategy chosen by the participant.

In general, TSP funds cannot be withdrawn before the participant reaches the age of 59½, unless certain exceptions apply. However, participants who separate from federal service can choose to withdraw their funds or roll them over to another eligible retirement account.

Upon retirement, participants have several options for accessing their TSP funds. They can choose to receive monthly payments, purchase an annuity, or make a one-time withdrawal. The specific options and tax implications vary depending on the participant’s circumstances.

Yes, participants can transfer their TSP funds to another eligible retirement account, such as an Individual Retirement Account (IRA) or a 401(k) plan, through a process called a rollover. This allows individuals to consolidate their retirement savings and potentially access a wider range of investment options.

Yes, if a participant withdraws funds from the TSP before the age of 59½, they may be subject to a 10% early withdrawal penalty, in addition to regular income taxes. However, certain exceptions, such as disability or financial hardship, may waive the penalty.

For further assistance or specific inquiries about the TSP, individuals can contact the FRTIB directly through their website or by calling their customer service hotline. The FRTIB provides resources and guidance to help participants make informed decisions about their retirement savings.