1. What is the TSP Annuity?

The TSP (Thrift Savings Plan) annuity is a monthly payment option for federal employees that provides guaranteed income for life. The amount is calculated based on your TSP account balance and annuity factors provided by the TSP.

2. How Does the Calculator Work?

The calculator uses the TSP annuity formula:

Where:

• \( TSP\ Balance \) — Your total TSP account balance in USD
• \( Factor \) — Annuity factor from TSP tables (unitless)

Explanation: The annuity factor is determined by your age, type of annuity chosen, and other factors provided in TSP annuity tables.

3. Importance of TSP Annuity Calculation

Details: Calculating your potential annuity payments helps in retirement planning and deciding whether the TSP annuity option is right for your financial situation.

4. Using the Calculator

Tips: Enter your current TSP balance in USD and the appropriate annuity factor from TSP tables. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find TSP annuity factors?
A: Annuity factors are available in TSP publications or through the TSP website's annuity calculator tool.

Q2: What types of annuities does TSP offer?
A: TSP offers single life annuities, joint life annuities, and various payment period options.

Q3: Are TSP annuity payments guaranteed?
A: Yes, TSP annuity payments are guaranteed for life by the federal government.

Q4: Can I change my annuity after purchase?
A: No, TSP annuities cannot be changed once purchased.

Q5: How does the TSP annuity compare to other retirement options?
A: The TSP annuity provides guaranteed income but may offer less flexibility than other withdrawal options.