Federal Savings Plan

The "Federal Savings Plan Contributions" allow for entering information about the client's and/or spouse's TSP account. Additionally, the Roth account can be illustrated. The prompts are discussed below.

Contribution Method

Select the method for entering the client's contribution

1.Percent of Pay e.g. 5%.

2.Dollar Per Deposit Contribution value will be entered as a dollar value, e.g. $100.

3.Maximum The contribution will be the maximum contribution based on the annual limit ($20,500 in 2022). If the client is younger than 50 years old it will automatically increase the contribution by the additional catch up amount ($3,000 in 2022). For any fractional years (e.g. the first year and the year of retirement), each contribution is equal the annual limit divided by the number of deposits per year.

Include Roth Account

Check this box to include a Roth account. Prompts will be displayed both for the pretax and Roth accounts.

Change Future Contributions

To change contribution levels in the future for pre-tax and/or the Roth account, check this box to configure:

1.# of Years Before Changing Contribs e.g. 3 years.

2.Future Contribution Method e.g. Percent of Pay.

3.Future Contribution enter the change in the amount of the contribution.

4.Annual Increase Method e.g. No Increase, Increase in Value, etc.

Has Federal Savings Plan Loan

Check this box if loan payments are currently being made.

Percent of Loan from Roth Account

If a Roth Account is included (by checking the Include Roth Account above), this prompt will appear. Enter the percent of payment that should be deposited to the Roth account.

Number of Payments Remaining

Enter the number of loan payments remaining.

Loan Payment

Enter the value of the loan payment

Except for the Loan Payment values, the prompts for the Roth and pretax account are identical. They are discussed below.

Current Balance

Enter the current balance of the TSP account.

Percent of Income or Contribution per Paycheck

Enter the value for the client's contribution to the (Roth or pretax) account.

Rate of Return

Enter the projected rate of return the account will earn until retirement.

Distribution Method

Select the distribution method for the account.

Distribution Rate of Return

Enter the rate of return during retirement.

Percent to Distribute

If the distribution method is Percent Of Account, enter the percent of the account to distribute each year.

Start Distributions

If distributions for the account are to be delayed beyond retirement, select the method for starting distributions.

Start Date, Owner's Age, Years After Retirement

The start value prompt is displayed based on the Start Distributions method selected. Enter the starting value associated with when the distributions are to start.

For additional control over distributions, read the Controlling Distributions entry in the Frequently Asked Questions for the Gap Analysis calculator.