Another important strategy for federal employees is to make the most of the Thrift Savings Plan (TSP). The TSP is a retirement savings plan for federal employees, with benefits similar to those of a 401(k) plan in the private sector. One effective TSP strategy is to contribute the maximum amount allowed each year, which is currently $19,500 for those under age 50 and $26,000 for those over age 50. Additionally, employees can consider allocating their TSP contributions across different funds based on their risk. tolerance and retirement goals.
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