Start Saving, Soldier!

The Federal Retirement Thrift Investment Board is trying to lure more military service members into the Thrift Savings Plan.

The 401(k)-style savings plan first allowed uniformed defense personnel to open TSP accounts in late 2001. About 220,000 service members initially joined. Participation has risen quickly, and the thrift plan now has almost 410,000 military participants, representing 17 percent of all TSP investors. The Navy has the highest number, with more than 132,000 TSP accounts.

But at an April 19 thrift board meeting, TSP Executive Director Gary Amelio said the agency wanted to encourage even higher military participation. In total, there are about 3.3 million federal employees and retirees who have $134 billion invested in the TSP.

Amelio has met with several members of the Defense Department's media branch in an effort to publicize the TSP. The Pentagon's Web site, DefenseLink, published an interview with Amelio last week.

"You're never too young or too old to start a savings account in TSP," Amelio said. "The tax deferral benefits are excellent, and compounded earnings are simply a phenomenal way to increase your wealth."

Members of the military can sign up for the TSP online, through the Pentagon's MyPay Web site.

Uniformed TSP participants are allowed to contribute up to 9 percent of their basic monthly pay, and all of their incentive pay or combat pay. The contributions are subject to a annual cap of $13,000, set by the Internal Revenue Service.

"We've been putting a special focus with DoD on getting more and more armed service members to participate," Amelio told the Pentagon. He predicted military participation would continue to increase. "As members of the armed services become more familiar with TSP, the more they like it … they find that it's a wonderful savings program."