Name Instructor Subject 12 December 2013 Understanding Thrift Savings Plan Apart from the Social Security and other saving plans, the Thrift Savings Plan is one of the greatest saving plans of the United States government. The Thrift Savings Plan is an investment plan for federal workers including the members of the uniformed service such as, the Public Health Services, the Coast Guard, and the National Guard…
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However, as part of the retirement strategy, the employees choose to invest their funds into the Thrift Savings Plan. The funds are not controlled by the government. When the government money is at stake, one place it cannot bump into is the federal employee retirement program for saving. This makes it secure for all federal employees. This review is sought to investigate the purpose of the Thrift Savings Plan, the contributions of both the employers and the employees and its benefits to the employees. It will also explore on the problems and challenges of investing in this particular Savings Plan. History of Thrift Saving Plan The Thrift Savings Plan is a product of the Congress. It is established under the Federal Employees’ System Act of the year 1986 specifically for the federal employees and the military. The Thrift Savings Board is controlled by the Federal Retirement Board, an agency of government that is independent. The Plan is managed by five members of the Board together with a Director, legally appointed by the president. This plan is equivalent to the private 401k and the 403b retirement plans. The tax benefits and saving options offered in The Thrift Savings Plan are similar to other retirement plans (Thrift Savings Plan Website). ...
Automatic deductions on income. 2. A diverse choice of investment options for instance professional designed Lifecycle funds 3. A wide range of tax treatment contributions such as: -Traditional tax contributions and tax-referred investment earnings - Roth contributions with tax-free earnings at retirement 4. Low administrative and investment expenses. 5. Contributions of an agency if the employee is covered by the Federal Employees’ Retirement System 6. At some point employees can access their money while still employed by the Federal Government. 7. A beneficiary participant account established for an employee’s spouse in case of death 8. A wide range of choices of withdrawal 9. A widened term of deferred tax on contributions and their growth. According to the Thrift Savings Plan, an employee covered by the Federal Employees’ Retirement System forms part of the package that includes basic annuity and Social Security Fund (Nestler 44). The Thrift Savings Plan explains it this way: For those covered by the Civil Service Retirement System, the Thrift Saving Plan is a supplement to their unity. The benefits offered by the Thrift Saving Plan depend on the retirement system one is registered in. However, in all the systems, the Thrift Saving Plan increases their retirement income. (qtd. in Form tsp-3) When the employee funds the Thrift Savings Plan with traditional tax (pre-tax), the amount of income tax is lowered, hence decreasing the burden of tax when working. This can be beneficial if the employee contributes the maximum amount in the income tax bracket. When the employee or the member has invested in the Plan, no tax is made on the earnings until a withdrawal is made. A clear opportunity is
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ion (Direct and alternative) 3.9 Operations 3.10 Historical and Current Status: 3.10.1 Capacity 3.10.2 Process 3.10.3 Labor 3.10.4 Facilities 3.10.5 Inventories 3.10.6 Distribution process 3.10.7 Quality systems 3.11 Future Vision 3.11.1 Capacity 3.11.2 Process 3.11.3 Labor 3.12 Employee Satisfaction Research 3.12.1 Facilities 3.12.2 Inventories 3.12.3 Distribution Process 3.12.4 Quality Systems 4.0 Industry Analysis 5.0 Financial 5.0 Current cost of capital 5.0.1 Capital structure 5.0.2 Cost associated with capital structure 6.0 Discussion of data found in Appendix 7.0 Referenes 8.0 A: Organizational Chart–Current State: 9.0 B.
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