You can think of the FERS TSP as a 401(k) plan solely for federal employees and military personnel. Just like a 401(k) for private sector employees, contributions to a traditional TSP are not taxed until they are distributed (referred to as tax-deferred). Upon retirement, employees also may roll over the TSP contributions and earnings to a Roth IRA for more tax-deferred treatment.
Thrift Savings Plan participants can choose from six investment options. The investment options are:
Government Securities Investment Fund
Fixed Income Index Investment Fund
Common Stock Index Investment Fund
Small-Capitalization Index Investment Fund
International Stock Index Investment Fund
Life-cycle investment funds