Keep You Money Interest-Growing

Week of October 30, 2006

One way to save for retirement is to place money into the Thrift Savings Plan (TSP). The TSP gives federal employees the option to invest in a 401(k)-type retirement account. One of the largest benefits to the TSP is that it is a tax-deferred account, meaning all money placed in it is done so before taxes are calculated so that you would have to pay less in income taxes. For individuals in career fields who still receive re-enlistment bonuses, they may place up to $42,000 -- tax free, of course -- into their TSP accounts. All money placed into a TSP account in a tax-exempt combat zone is also tax-exempt when it is withdrawn. For more information, visit the Thrift Savings Plan website.