The Thrift Savings Plan (TSP) tab allows editing a federal employee's cash balance plan. It is only enabled if the retirement account for the individual is CSRS, CSRS Offset, or FERS.
| Notes: | In the system configuration (under File/Config/Gap Analysis/Federal Plans), the Client's (and spouse's) TSP tabs may either be disabled (default) or hidden when a federal retirement plan is not selected. |
| To edit the default rates of return for the TSP funds, select File/Config from the ribbon bar and select Default Values in the navigator on the left. |
| Warning: | Illustrating the TSP funds is not FINRA compliant. TRAK can be configured in File/Config/Gap Analysis/Federal Plans to illustrate the TSP account in a FINRA compliant method. |
Thrift Savings Plan Data
Each prompt is discussed below:
Select the life cycle fund in which the participant is enrolled. There are the normal life cycle funds (L Income, L2020, L2030, L2040 and the L2050) and there are two custom funds:
1.If the client only has deposits and balances associated with a specific life cycle fund, elect the respective fund.
2.If the client has elected to custom allocate their contribution to the G, F, C, S and/or I funds, and no contributions or balances are directed to the Life Cycle Funds, select Custom GFCSI. (If Custom GFCSI is selected, values for the Percent Allocated and Balance columns in the grid must also be entered).
3.If the client has funds in multiple life cycle accounts (e.g. L2020 and L2030), or one-or-more life cycle accounts and some customized allocation, select Mixed. Values must be entered in the columns for the Custom Allocation and Life Cycle Funds Allocation grids:
A.For the Custom Allocation grid, values must be entered in the Percent Allocated and Balance columns.
B.For the Life Cycle Funds Allocation grid, values must be entered for the Current Balance and Percent of Income (or Dollar Contribution, depending upon which column is showing) columns.
| Example: | The Percent Allocated column refers to the percent of the contribution to the custom plan. In the example below: |
| The client is contributing 5% to the GFCSI account to the Roth account and 3% of their income to the pre-tax account. For the Roth account, |
1.20% of the 5% contribution (or 1% of their income) is being contributed to the G fund,
2.45% of the 5% (or 2.25% of their income) is deposited to the F fund,and
3.the remaining 35% of the 5% (or 1.75 of their income) is being contributed to the C fund.
The total current Roth account balance is $10,000.
Their 3% pre-tax contribution for the custom allocation is divided between the C and F funds:
1.75% of the 3% pre-tax contribution (or 2.25% of income) is deposited to the G fund, and
2.25% of the 3% pre-tax contribution (or 0.75% of income) is deposited to the F fund.
| Note: If the total percent allocated contribution to the Roth account or pre-tax account is not equal to 100%, TRAK will weigh the contribution. In the example below: |
| The total Percent Allocated is 50%. TRAK will weight-base the allocation. The total allocation is 50%. TRAK will |
1.Deposit $5 out of every $50 dollars (i.e. 10% of the deposit) in the G fund,
2.$15 of every $50 dollars (i.e. 30% of the deposit) into the F fund,
3.and $30 out of $50 (i.e. 60% of the deposit) to the C fund.
Contribution Method
Select the method for entering the client's contribution
1.Percent of income, e.g. 5%.
2.Dollar, increase with raise. Contribution value will be entered as a dollar value, e.g. $100, and will increase when the client receives a raise by the same percentage of the clients raise.
3.Dollar, no increases. Contribution will be a constant value and will not increase.
Include Roth Account
Check this box to include a Roth account. Prompts will be displayed both for the pretax and Roth accounts.
The following prompts are only available if a life cycle fund is selected for the Allocation Method.
Current Balance (only enabled if a normal life cycle fund is selected for the Allocation Method).
Enter the current balance of the TSP account.
Percent of Income or Dollar Contrib. per Paycheck
Enter the value for the client's TSP contribution.
| Note: | The L2010 fund was closed the end of 2010. Balance in the fund were moved to the L Income fund. If a previous entry had a balance for the L 2010 fund, a button will show up to the right of the grid that allows for quick-and-easy transfer of funds from the L 2010 fund to the L Income fund. |
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Rates of Return Column
The rates of return for each of the GFCSI funds must be entered in the Rates of Return column on the Allocation or Custom Allocation tab (caption changes depending upon the Allocation Method selected). By clicking on the TSP Rates of Return button below the grid a number of actions can be taken:
1.Assign Default Rates of Return
Assigns the default rates of return configured in the File/Config/Defaults.
2.Assign Historical 10 Year Average
Assigns the last 10 year average of historical data.
| Note: | Historical data is only available after data has been downloaded from the internet. Click on "Update Historical Rates of Return" (with an internet connection) to download data. |
3.Assign Historical Average
Assigns historical rates of return for all years of the TSP accounts.
Allows for viewing historical TSP rates of return.
5.Update Historical Rates of Return
Updates the TSP historical data. An internet connection is required for this to occur. TSP rates of return are updated by the 5th of each month.
TSP Distribution Options
The distribution options for the Roth and pretax accounts are identical. Each prompt is discussed below.
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
This prompt is be displayed based on the Start Distributions method selected. Enter the starting value 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.
