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TSP vs Civilian 401(k) Comparison

See how your Thrift Savings Plan stacks up against a civilian 401(k). Compare government matching, ultra-low fees, and projected growth to make informed decisions about your retirement savings.

Your Retirement Details

$
$

BRS: Government auto-contributes 1% of base pay + matches up to 4% more (5% total free money)

$

Used to calculate BRS matching (19.0% of base pay contributed)

$

Annual salary

%

Typical range: 3-6% of salary

%

Historical stock market average: ~7% after inflation

C Fund S&P 500 Index

Risk Level: Medium-High · Expense Ratio: 0.05%

Tracks the S&P 500, representing large and mid-cap U.S. companies. This is the most popular TSP fund and mirrors what most civilian 401(k) plans offer as their core U.S. equity option.

Fund selection is informational only. The projections above use the "Expected Annual Return" rate you set, which applies uniformly regardless of fund chosen.

Thrift Savings Plan

$1,757,546

Projected balance at age 60

Starting Balance$35,000
Your Contributions$307,200
BRS Match (Free Money)$80,640
Investment Growth$1,334,706
Expense Ratio0.05%
Total Fees Paid$20,199
Monthly Income (4% Rule)$5,858/mo

Civilian 401(k)

$1,356,412

Projected balance at age 60

Starting Balance$0
Your Contributions$307,200
Employer Match$96,000
Investment Growth$953,212
Expense Ratio0.50%
Total Fees Paid$152,169
Monthly Income (4% Rule)$4,521/mo

Projected Growth Over 32 Years

Year-by-year balance comparison (TSP includes existing balance and BRS match)

3
6
9
12
15
18
21
24
27
30
32
TSP: $1,757,546
401(k): $1,356,412

TSP Advantage Highlights

Fee Savings Over Career

$131,970

TSP 0.05% vs 401(k) 0.50%

BRS Match Value

$80,640

$210/mo in free contributions

Balance Difference

+$401,134

TSP ahead at retirement

Expense Ratio Comparison

The TSP's ultra-low expense ratio is one of its greatest advantages. Even a small difference in fees compounds dramatically over decades.

TSP (0.05%)$0.49 per $1,000/yr
0.05%
Best Civilian (0.10%)$1.00 per $1,000/yr
0.10%
Avg. Civilian 401(k) (0.50%)$5.00 per $1,000/yr
0.50%

The TSP is 10x cheaper than the average civilian 401(k). Over 32 years, this saves you an estimated $131,970 in fees that would otherwise eat into your retirement savings.

Key Takeaways

1

The TSP has the lowest fees of any retirement plan in the country

At 0.05%, the TSP's expense ratio is roughly 10x lower than the average civilian 401(k). This difference compounds over decades and can mean tens of thousands more in your pocket at retirement.

2

BRS matching is free money - don't leave it on the table

Under BRS, the government auto-contributes 1% of your base pay and matches up to 4% more. That's $210/month in free money. At minimum, contribute 5% of base pay to get the full match.

3

You can keep your TSP after separation

When you leave the military, you do NOT have to roll your TSP into a civilian 401(k). You can keep it open and continue benefiting from the ultra-low fees. You can also roll civilian 401(k) funds INTO the TSP.

4

The G Fund is unique to TSP

The Government Securities Fund offers a return higher than short-term Treasury bills with zero risk of principal loss. No civilian investment vehicle offers this combination. It's especially valuable for conservative investors or those near retirement.

5

Start early - time is your biggest advantage

With 32 years until retirement, your $800/month contribution could grow to $1,757,546 thanks to compound interest. Even small increases in monthly contributions now have an outsized impact on your final balance.

2026 Contribution Limit: The 2026 annual TSP/401(k) contribution limit is $23,500 ($31,000 if age 50+).

Note: This calculator uses pre-tax (Traditional) contributions. Roth TSP contributions are taxed now but grow tax-free. Consider consulting a financial advisor about which option is right for you.

Disclaimer

This calculator provides estimates only for educational purposes. Actual returns will vary based on market performance, fund selection, contribution timing, and other factors. The TSP expense ratio of 0.05% is approximate and may change. Civilian 401(k) expense ratios vary widely by employer and fund selection. The 4% withdrawal rule is a guideline, not a guarantee. This tool does not account for taxes, Required Minimum Distributions (RMDs), catch-up contributions, Roth vs Traditional options, or individual financial circumstances. Consult a qualified financial advisor before making retirement planning decisions. No data is stored or transmitted.