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jmr2141
New Member

Is TSP the same as IRA?

is a thrift savings plan the same as an ira
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2 Replies
ColeenD3
Expert Alumni

Is TSP the same as IRA?

No, it is not.

 

TSP-The thrift savings plan is a defined-contribution plan gives federal employees a plan parallel to what nonfederal employees have with 401(k) plans. 

 

IRA-An Individual Retirement Account (IRA) is a type of plan that you contribute to outside of a work situation.

Is TSP the same as IRA?

Although they have the same general purpose, they are controlled by different tax laws.  Some rules on contributions and withdrawals, especially regarding penalty exceptions, may be very different.  And when the program asks for IRA contributions, it is only asking about IRAs.  Contributions to work place plans are captured from your W-2. 

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