After a strong finish in December 2023, Thrift Savings Plan started 2024 with negative returns in January.
After a strong finish in December 2023, Thrift Savings Plan started 2024 with three funds posting negative returns in January. The remaining 12 funds posted positive returns.
The biggest drop was in the S fund. The small cap stock index investment posted returns of -2.44%, seeing a large drop since October of last year which reached -6.26%.
The fixed-income investment index, F fund, and the international stock index, I fund, also saw a decline, posting negatives returns to start the year. This comes after having positive returns from the months of November and December 2023.
While those three funds failed to reach positive returns, the other 12 funds grew mostly at a smaller rate than in previous months.
The big winner in January was the C fund. The common stock index posted positive returns with a 1.66% increase and started the new year with the highest returns at 20.78%.
The government securities investment G fund posted positive returns with 0.34% to start January, which was .05% lower from December.
All Lifecycle funds posted positive returns to start the new year, though the L Income fund and L-2025 fund were below 0.40%.
| Thrift Savings Plan — December 2023 Returns | | | |
|---|
| Fund | January 2024 | Year-to-Date | Last 12 Months |
| G fund | 0.34% | 0.34% | 4.23% |
| F fund | -0.19% | -0.19% | 2.06% |
| C fund | 1.68%% | 1.68% | 20.78% |
| S fund | -2.41% | -2.41% | 10.34% |
| I fund | -0.22% | -0.22% | 8.93% |
| L Income | 0.36% | 0.36% | 6.98% |
| L 2025 | 0.37% | 0.37% | 8.12% |
| L 2030 | 0.41% | 0.41% | 10.84% |
| L 2035 | 0.41% | 0.41% | 11.44% |
| L 2040 | 0.41% | 0.41% | 12.05% |
| L 2045 | 0.40% | 0.40% | 12.56% |
| L 2050 | 0.41% | 0.41% | 13.09% |
| L 2055 | 0.45% | 0.45% | 15.09% |
| L 2060 | 0.45% | 0.45% | 15.09% |
| L 2065 | 0.45% | 0.45% | 15.09% |
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FAQs
After a strong finish in December 2023, Thrift Savings Plan started 2024 with negative returns in January. After a strong finish in December 2023, Thrift Savings Plan started 2024 with three funds posting negative returns in January. The remaining 12 funds posted positive returns.
What are the TSP changes for 2024? ›
The 2024 IRS annual limit for regular TSP contributions is $23,000, and the TSP Catch-up annual contributions limit is $7,500. The Catch-up contributions may be made in addition to regular TSP contributions, if you are age 50 or older (or will be turning age 50 in 2024).
Will TSP limits increase in 2025? ›
New for 2025
The limit is the greater of $10,000 or 150% of the regular catch-up limit, as indexed for inflation. For this projection, we assume the limit for 2025 will ultimately be based on the regular catch-up limit in 2025, as noted in the draft technical corrections bill, instead of 2024 as passed in SECURE 2.0.
Why is the TSP F fund losing money? ›
The jaggedness of TSP F Fund's returns versus the smoothness of TSP G Fund demonstrates how the higher returns from TSP F Fund come with more volatility and periods of loss. In the last three years, as interest rates have risen and bond prices have suffered, TSP F Fund has been particularly volatile.
How is the S fund doing in TSP? ›
Basic Info. Thrift Savings Plan S Fund Monthly Returns is at 3.36%, compared to -6.46% last month and 0.44% last year. This is higher than the long term average of 0.84%.
What is the 5 year rule for TSP? ›
Earnings are considered qualified after both of these Internal Revenue Code (IRC) requirements are met: 5 years have passed since January 1 of the calendar year when you made your first Roth TSP contribution and you are at least age 59½, permanently disabled, or deceased.
What changes are coming to TSP? ›
Required minimum distribution (RMD) changes
SECURE 2.0 increases the age you must begin taking RMDs from your TSP account. The start age for RMDs increased from 72 to 73 starting on January 1, 2023. The start age will further increase to 75 on January 1, 2033.
What is the safest fund in TSP? ›
If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.
Should I take money out of TSP? ›
If you have other sources of income in retirement and don't need money from your TSP account right now, you don't need to request withdrawals (also called distributions or post-employment distributions when you take money out after you leave federal service) until you reach a certain age and become subject to required ...
What is average TSP balance? ›
Federal employees do a great job saving for retirement in the Thrift Savings Plan, and the numbers prove it. Here are a few of the outstanding statistics: Total TSP assets at the end of 2023 were $845 billion. 4,060,009 FERS TSP accounts with an average account balance of $175,692.
The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.
Which TSP fund is better, C or S? ›
Small-Capitalization Stock Index Fund (S Fund)
The S Fund is considered one of two funds with the greatest risk in the TSP. 5 It has outperformed the C Fund with proportionately greater volatility over time. The BlackRock iShares has no exact S Fund equivalents.
What is the average return on TSP? ›
The TSP C-Fund which approximates the S&P 500, has had an average annual 12.29 percent gain between 1988 and 2020; the TSP F-Fund, a broad index representing the U.S. bond market, has had an average annual 6.29 percent from 1988 to 2020; and the G-fund, long term U.S. Treasury notes, has had an average annual of 4.70 ...
What pay period to change TSP for 2024? ›
To make equal contributions over the course of the 2024 calendar year (for 26 pay periods), you should contribute $885 each pay period. You should enter your election of $885 into myPay during December 3 – 9, 2023, and your election should be effective on December 17, 2023, the first pay period for 2024.
What is the catch-up contribution for 2024? ›
Individuals who are age 50 or over at the end of the calendar year can make annual catch-up contributions. Annual catch-up contributions up to $7,500 in 2023 and 2024 ($6,500 in 2021-2020; $6,000 in 2015 - 2019) may be permitted by these plans: 401(k) (other than a SIMPLE 401(k))
What is the elective deferral limit for 2024? ›
The basic limit on elective deferrals is $23,000 in 2024, $22,500 in 2023, $20,500 in 2022, $19,500 in 2020 and 2021, and $19,000 in 2019, or 100% of the employee's compensation, whichever is less.
What is the L 2025 fund in TSP? ›
The L 2025 Fund's investment objective is to achieve a moderate level of growth with a moderate emphasis on preservation of assets. The Fund's allocation in the G, F, C, S, and I Funds is adjusted quarterly.
