How to Calculate TSP

How to Calculate TSP
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The TSP, or Thrift Savings Plan, is a retirement savings program for federal government employees, similar to the 401(k) accounts that are often provided to employees of private agencies. For members of the U.S. military, TSP is an addition to the Civil Service Retirement System pay offered by the government. For civilian employees, TSP is a supplement to the Federal Employees Retirement System benefits. The TSP was established in 1986 and is administered by the Federal Retirement Thrift Investment Board.

Decide how much you wish to contribute out of your base pay per month. If you have a dollar amount that you wish to contribute, calculate your yearly TSP by multiplying this by 12. In 2010, the maximum amount that could be payed per year into TSP was $16,500.

Pay as a percentage from your paycheck. Calculate your TSP by multiplying the percentage of your monthly contribution by the amount of your monthly paycheck. In example, if you make $2,000 per month and have your TSP set to 1 percent, then you will be contributing $20 per month, or $220 per year into your TSP.

Calculate the current value of our TSP fund. Log onto your TSP account and check how many shares you have of which fund. You can check the current value of the shares for different TSP plans on the TSP website maintained by the U.S. government, or on TSPTalk. Multiply the price per share by how many shares you have. For example, when this story was written, the TSP L Income fund was valued at $15.0881 per share. If you had 1,000 shares of this fund, the value of your TSP account would be $15,088.10. The TSP fund value is updated daily.