What is the 2026 TSP contribution limit?

$23,500 elective deferral for participants under 50. $31,000 for participants 50 and older ($23,500 + $7,500 catch-up). Combat-zone contributions can exceed these limits — special CZTE rules apply, with the IRS annual addition cap of $77,500 in 2026.

How does the BRS match work?

If you opted into the Blended Retirement System (BRS) — automatic for anyone joining 2018 or later, optional opt-in for those serving on 2017-12-31 — the government contributes: (1) 1% of your base pay automatically, regardless of what you contribute; (2) dollar-for-dollar match on your first 3% contribution; (3) 50 cents per dollar on the next 2%. Contribute 5% of your base pay and you get a full 5% match from the government, for a 10% total.

Roth or Traditional TSP for service members?

Roth TSP is typically the better choice for junior enlisted and junior officers, AND for ANYONE in a combat zone. Reasons: (1) you're in a low-to-moderate tax bracket now, likely higher in retirement; (2) combat-zone contributions to Roth grow tax-free forever — the rarest free lunch in the tax code. Traditional TSP starts making sense at O-4+ pay grades or dual-income high-earning households when you're in a 24%+ marginal bracket today and expect lower in retirement.

Which TSP fund should I pick?

For a service member under 40 with 10+ years to retirement: the L Fund matching your target retirement year is the simple, defensible default. It auto-rebalances toward bonds as you age. If you want to DIY, the C Fund (S&P 500) has historically averaged ~10% annually long-term; the S Fund adds small-cap exposure; the I Fund adds international. The G Fund (government securities) is the cash equivalent — putting everything in G for decades is the biggest TSP mistake service members make.

What happens to my TSP after I separate?

It stays in TSP. You can leave it (good — TSP fees are among the lowest in the industry, currently around 0.05%). You can roll it to an IRA (more flexibility but typically higher fees). You can withdraw it (penalties + taxes — almost always a mistake). Roth TSP balance can be rolled to a Roth IRA with no taxes due. Don't let a financial advisor talk you into rolling out for "more investment options" — TSP's C Fund tracks the same S&P 500 they're going to sell you, just at lower cost.

Are TSP loans a good idea?

Generally no. The TSP loan rule is "pay yourself back with interest" — sounds great until you realize the money you're paying back is post-tax, then taxed AGAIN at withdrawal in retirement (for Traditional balances). And while the loan is out, that money isn't earning market returns. Emergency? Yes. Vacation, car, wedding? No.

●InvestigationsCongress made VA disability claims free to file. An entire industry charges veterans anyway — and nobody can stop them.→

Military Money Toolkit

Military TSP Guide — 2026

The Thrift Savings Plan for service members. BRS match math, Roth vs Traditional, fund-by-fund honest take, combat-zone strategy. No influencer crypto pitch. No annuity salesman. Just the math the government already published.

Five rules — if you read nothing else

Contribute at least 5% of base pay. The government matches dollar-for-dollar on your first 3% and 50¢ on the next 2%, plus a free 1%. Anything less than 5% leaves free money on the table — typically $1,500-$5,000/year depending on your paygrade.
Choose Roth TSP — probably. If you're E-1 through O-3, or anyone in a combat zone, Roth almost always wins. Tax-free growth + tax-free contributions during CZTE = the single best deal in the tax code.
Don't hide in G Fund. G Fund is a parking spot, not a strategy. Over 20+ years, a 100% G Fund TSP underperforms a basic L Fund by 50-100% in real dollars. That's the cost of "safety."
Pick a target-date L Fund OR build C/S/I yourself. Both work. Don't overthink it. The L Fund matching your retirement year auto-rebalances for you.
Don't roll out after separation unless you have a clear reason. TSP fees are ~0.05% — among the lowest anywhere. Financial advisors who tell you to roll over to "get more options" are getting paid to move your money.

BRS match math

+1%

+0%

=1%

Just the free 1% auto contribution. Hard pass — you're skipping the entire match.

+1%

=3%

You get $1 match on your $1.

+1%

+2%

=5%

You get $2 match. Still leaving money.

+1%

+3%

=7%

Dollar-for-dollar match through 3%. You still get more match if you go to 5%.

+1%

+3.5%

=8.5%

50¢ per dollar on dollar #4 — $0.50 match.

+1%

+4%

=10%

★ Sweet spot. Full 5% match. 10% total goes in.

10%

+1%

+4%

=15%

Above 5%, no more match — but you're still saving aggressively for yourself.

15%

+1%

+4%

=20%

Heavy saver. Watch the annual contribution cap ($23,500 in 2026).

You contribute · +1% auto · +match · = total going in

The 5 funds — what they actually do

Plus L Funds (Lifecycle), which mix the 5 according to your target retirement year and auto-rebalance over time.

Government Securities

Low risk

Specially-issued Treasury securities. Capital preservation. Never has a negative return.

Long-term avg: ~2-3% long-term

Putting your entire TSP in G Fund for decades is the biggest mistake service members make. It barely keeps up with inflation. Use it as a parking spot near retirement, not as your career strategy.

Fixed Income Index

Low-Mid risk

Bloomberg US Aggregate Bond Index — government, corporate, mortgage-backed bonds.

Long-term avg: ~3-4% long-term

Useful as a small portion (5-15%) of a diversified portfolio to dampen volatility. For young service members, mostly unnecessary — the L Fund includes it for you in age-appropriate amounts.

Common Stock Index

High risk

S&P 500 — 500 largest US companies, market-cap weighted.

Long-term avg: ~10-11% long-term (with significant year-to-year volatility)

The workhorse of any aggressive TSP portfolio. If you don't understand it and don't want to think about it, putting your whole contribution in C Fund for 20 years is a defensible, history-supported strategy.

Small Cap Stock Index

High risk

Dow Jones US Completion Total Stock Market Index — small and mid-cap US stocks not in the S&P 500.

Long-term avg: ~7-10% long-term, more volatile than C

Adds growth exposure to your portfolio. Common allocation: 70% C / 20% S / 10% I as a young-service-member default.

International Stock Index

High risk

MSCI EAFE Index — large international developed-market stocks. As of 2024 reforms includes a broader benchmark.

Long-term avg: ~5-7% long-term, varies significantly

International exposure is good portfolio hygiene. 10-20% allocation is reasonable. Heavier I-Fund allocations have underperformed C-Fund for the last 15+ years; don't chase international weighting based on theoretical arguments.

What does the match actually buy me?

Toggle the calculator below — see how much of your TSP balance at retirement is "your" money vs the free 5% government match compounded over time.

Combat zone — the best deal in the tax code

When you're in a CZTE (Combat Zone Tax Exclusion) area, your contributions are TAX-FREE going in. Contribute Roth, and the growth + withdrawal are ALSO tax-free.

Combat-zone contributions can exceed the normal $23,500 elective deferral limit, up to the IRS annual additions cap of $77,500 in 2026. If you're deployed and not maxing this out, you're leaving a one-time-in-a-career opportunity on the table.

Talk to your finance office before you deploy — adjusting the contribution percentage mid-deployment can be a hassle. Set it before you go.

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