TSP Calculator

Shawn Plummer

CEO, The Annuity Expert

TSP Calculator For Growth

A Thrift Savings Plan works similarly to a 401k, 457, and 403b retirement plan. The TSP also shares the same contribution limits. Use this tool as a TSP calculator to project your growth potential, and it includes an employer matching option.

Tsp Growth Calculator

TSP Withdrawal Calculator For Retirement

To maximize your TSP after retirement, compare the TSP annuity payments from your current Thrift Savings Plan to rolling it over to a new annuity (without tax penalties) offering guaranteed lifetime withdrawals (GLWB). Additionally, use this TSP payment calculator to forecast future withdrawals if you’re nearing retirement but not for several years.

Tsp Annuity Calculator

TSP Annuity Payments vs. GLWB

A Guaranteed Lifetime Withdrawal Benefit (GLWB) is an option in certain annuity contracts that guarantees a set withdrawal amount for the annuitant’s lifetime, regardless of market fluctuations. One of its key features is its flexibility; even if the account balance drops to zero, the guaranteed withdrawals continue. Additionally, many GLWBs come with death benefits, ensuring that any remaining balance is passed on to beneficiaries in a lump sum.

In contrast, TSP annuitized payments, once initiated, are irrevocable and lock the retiree into a fixed payment structure. While they offer consistent payouts, they may not have a residual value upon death unless specific survivor options are chosen, potentially leaving beneficiaries without benefits.

FeatureAnnuitized PaymentsGuaranteed Lifetime Withdrawal Benefits
Nature of PaymentRegular payments for life or a specified period.Regular withdrawals from the account value for life.
FlexibilityLimited flexibility once payments start.More flexibility to start, stop, or change withdrawal amounts.
Control Over PrincipalNo control, as the principal is exchanged for payments.Retain some control over the remaining account value.
Death BenefitTypically, no benefit after death (depends on the payout).Remaining account value can be passed to beneficiaries.
Impact of MarketMarket changes do not affect the payment amount.Withdrawal amounts may be affected by account performance.
LiquidityNo access to lump sum cash after annuitization.Access to remaining cash value, subject to terms and fees.
Tsp Calculator

TSP Withdrawal Comparison

Historically, financial advisors recommend withdrawing 4% from your TSP and adjusting for inflation. However, the 4% rule has been debunked as a safe withdrawal rate. New research concludes that the new rule is as low as 2.8%. The following table compares rolling your TSP into a new annuity with withdrawing income or utilizing an advisor.

FeaturesAnnuityTSPIRARoth IRA
Withdrawal Percentage5.20% – 6.55%4%4%4%
Can Income Increase?YesYesYesYes
Can Income Decrease?NoYesYesYes
How Long Will Money Last?Lifetime30 Years+30 Years+30 Years+
Annual Fees0 – 1.50%1% – 4%1% – 4%1% – 4%
Death BenefitAccount BalanceAccount BalanceAccount BalanceAccount Balance

Example: A 60-year-old retiree starts withdrawing immediately from their $1 million portfolio, they would receive:

  • Annuity: Between $52,000 and $61,000
  • 401k: $40,000
  • IRA: $40,000
  • Roth IRA: $40,000

Next Steps

Use our TSP calculator to easily estimate your retirement savings. Plan your withdrawals with our free tool, ensuring you make the most of your funds for life. Don’t wait – contact us for a quote today and secure your retirement!

Tsp Withdrawal Calculator For Retirement

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed insurance agent and annuity broker with over a decade of first-hand experience. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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