Thrift Savings Plan

What it means

The Thrift Savings Plan is a defined contribution plan run for federal civilian employees and the uniformed services, separate from a federal pension.

It has its own beneficiary form, and that form governs — not a will, and not the beneficiary named on any other federal benefit.

Its rules for beneficiaries after a death, including how long an inherited account can be held, are the plan's own.

Why it matters

Federal families frequently hold several separate benefits, each with its own beneficiary record, and assume one form covers them all.

The account is often substantial and is easy to overlook because nothing about it arrives in the post.

When you are likely to meet it

• When a federal employee or service member dies.
• When reviewing which federal benefits name whom.
• When an inherited federal account has to be claimed.

Related terms

• Beneficiary designationA named person on an account or policy who receives it directly on death, without it passing through the will or probate.
• Federal retirement benefitsThe pension and insurance system for federal civilian employees — FERS or the older CSRS, plus group life cover, each with its own beneficiary record.
• Inherited IRAA retirement account received from somebody who died, held under rules that differ from an account you opened yourself.
• Railroad retirement benefitsA separate federal retirement and survivor system for railroad workers, run by its own board rather than by Social Security.
• Required minimum distributionThe amount that has to be taken out of a retirement account each year once the rules require withdrawals to begin.
• Survivor annuityA continuing pension payment to a surviving spouse, if that option was chosen when the pension started.
• Survivor benefitA continuing payment to a spouse, child or other dependant after somebody dies — from Social Security, a pension, or an annuity.

Sahvelo guidance that uses this

• Federal and railroad benefits
• Retirement accounts