Thrift Savings Plan (TSP) and BRS Matching

Start Here If You Are New to TSP

The Thrift Savings Plan is the federal government 401(k)-equivalent for Marines. BRS Marines are auto-enrolled at 5 percent of basic pay starting the pay period after day 60 of service. The agency contributes 1 percent automatic (free money) starting day 60. The agency matches up to 4 percent of your contribution starting at month 24. Total potential agency contribution is 5 percent. Roth and Traditional options exist. The annual elective deferral limit is set by the IRS. Combat zone tax-free contributions are allowed.

This page walks you through TSP from your seat as a General Marine. By the end you will know.

• The BRS auto-enrollment at 5 percent (October 2020 and later)
• The agency 1 percent automatic contribution at day 60
• The agency 4 percent match starting at month 24
• The 26-year service cap on agency contributions
• The 25-month vesting threshold for agency 1 percent contributions
• Roth vs. Traditional TSP options
• Combat zone tax-free contribution rules
• Catch-up contributions for age 50+

Every fact on this page comes from DoD 7000.14-R Volume 7ADoD 7000.14-R Volume 7A Chapter 51 (May 2025), Title 26 U.S.C.Title 26 U.S.C. sections 402(g) and 415(c), and the DepSecDef BRS Implementation Memo dated January 27, 2017.

What TSP Is

Per Chapter 51 paragraph 1.0, TSP is the federal government tax-deferred retirement savings plan available to all Marines. TSP offers tax deferral advantages similar to those offered by private corporations under 401(k) plans.

The Federal Retirement Thrift Investment Board (FRTIB) administers TSP. The plan operates separately from the BRS retirement annuity (the defined benefit pension portion of BRS). Together, BRS retirement annuity plus TSP plus Continuation Pay form the BRS three-part retirement framework.

TSP Eligibility

BRS Members

Per Chapter 51 paragraph 4.1, all Marines under the Blended Retirement System are eligible for TSP with agency contributions. BRS applies to Marines who.

• Entered service on or after January 1, 2018 (Auto-Enrolled BRS Member).
• Were grandfathered and elected to opt into BRS during the 2018 election period (BRS Opt-In Member).

Non-BRS Members

Per Chapter 51 paragraph 5.0, Marines under the legacy High-Three retirement system contribute to TSP but are NOT eligible for agency automatic or matching contributions. The agency 1 percent and matching contributions are BRS-only.

BRS Auto-Enrollment

Auto-Enrolled BRS Members (October 1, 2020 and Later)

Per Chapter 51 paragraph 4.4.2, a Marine enrolled in BRS by virtue of accession on or after October 1, 2020, is automatically enrolled in TSP at 5 percent individual contribution from monthly basic pay (or inactive-duty pay for RC). Contribution begins the first pay period following the Marine's 60th day of service as calculated from PEBD.

Auto-Enrolled BRS Members (January 1, 2018 to September 30, 2020)

Per Chapter 51 paragraph 4.4.1, a Marine accessing on or after January 1, 2018, but on or before September 30, 2020, was automatically enrolled at 3 percent of basic pay starting the pay period after day 60.

BRS Opt-In Members

Per Chapter 51 paragraph 4.3, BRS Opt-In Members were NOT automatically enrolled in TSP. They had to affirmatively elect a contribution amount through MyPay.

Annual Re-Enrollment

Per Chapter 51 paragraph 4.4.4, annual TSP re-enrollment is required for any Auto-Enrolled BRS Member who has stopped automatic TSP contribution by reducing the individual contribution to 0 percent or $0 per pay period.

If at the final full pay period of the year the contribution is at 0 percent, the Marine is automatically re-enrolled on January 1 of the following year at 5 percent. The Marine declines the re-enrollment no earlier than December 1 of the year subject to re-enrollment.

Agency Contributions for BRS Members

Agency 1 Percent Automatic Contribution

Per Chapter 51 paragraph 4.5.1, starting the pay period that begins on or after the Marine's 60th day of service, the agency automatically contributes 1 percent of basic pay (or 1 percent of inactive-duty pay for RC) at NO cost to the Marine and without regard to the Marine's contribution amount.

This is free money. Even if you contribute 0 percent, the agency still contributes 1 percent.

The agency 1 percent continues for each pay period in which the Marine receives basic pay or inactive-duty pay through the end of the pay period during which the Marine attains 26 years of service.

Agency Matching Contributions

Per Chapter 51 paragraph 4.5.2, starting the pay period that follows the Marine's completion of 24 months of service (calculated from PEBD), the agency matches the Marine's contribution up to 4 percent.

The matching schedule per Table 51-4 is.

• Marine contributes 1 percent. Agency matches 1 percent. Total contribution is 3 percent (1 percent member + 1 percent automatic + 1 percent match).
• Marine contributes 2 percent. Agency matches 2 percent. Total contribution is 5 percent.
• Marine contributes 3 percent. Agency matches 3 percent. Total contribution is 7 percent.
• Marine contributes 4 percent. Agency matches 3.5 percent (1:1 for first 3 percent + 0.5:1 for next 2 percent). Total contribution is 8.5 percent.
• Marine contributes 5 percent or more. Agency matches 4 percent (the cap). Total contribution is at least 10 percent (5 percent member + 1 percent automatic + 4 percent match).

The 5 percent individual contribution rate captures the FULL agency match. Contributing more than 5 percent does not increase the agency match.

The agency match continues through the pay period during which the Marine attains 26 years of service.

Vesting

Per Chapter 51 paragraph 4.7 and 4.8, individual contributions and earnings are immediately vested.

Agency 1 Percent Vesting

Per paragraph 4.8.1, the agency 1 percent automatic contributions become fully vested on the first day of the 25th month of service (calculated from PEBD). Marines who separate before this 25-month threshold FORFEIT the agency 1 percent contributions and any earnings on those contributions.

This is the only TSP vesting cliff. Plan separations to occur after the 25-month mark to keep the agency 1 percent.

Agency Matching Vesting

Per paragraph 4.8.2, agency matching contributions are fully vested upon receipt in the Marine's TSP account, regardless of accrued service. Earnings on the matching contributions are immediately vested.

Roth vs. Traditional TSP

Default Traditional

Per Chapter 51 paragraph 3.4, individual contributions to TSP default to Traditional (tax-deferred) contributions. Agency 1 percent and matching contributions are ALWAYS Traditional (tax-deferred) regardless of the Marine's election.

Roth Election

Per Chapter 51 paragraph 3.5, Marines elect to contribute to a Roth TSP account instead of, or in addition to, a Traditional TSP account.

• Roth contributions are taken AFTER federal and state taxes.
• Roth withdrawals at retirement (including earnings) are tax-free, subject to IRS rules on qualified distributions.
• Traditional contributions are taken BEFORE federal and state taxes.
• Traditional withdrawals at retirement are taxed as ordinary income.

Combat Zone Roth Contributions

Per paragraph 3.5.1, Marines serving in a CZ contribute tax-exempt pay to the Roth TSP. The contributions are tax-free going in (because of CZTE) AND tax-free coming out (because of Roth status). This is one of the most tax-efficient contribution scenarios available to Marines.

Contribution Limits

Annual Elective Deferral Limit

Per Title 26 U.S.C. section 402Title 26 U.S.C. section 402(g), the IRS sets an annual elective deferral contribution limit. The limit applies to combined Traditional and Roth contributions across all the Marine's TSP and 401(k) accounts. Verify the current year limit at https://www.tsp.gov/.

Annual Additions Limit (Combat Zone)

Per Chapter 51 paragraph 3.2.2, total contributions including agency 1 percent, agency matching, and individual contributions for Marines serving in a CZ cannot exceed the annual additions limit per Title 26 U.S.C. section 415Title 26 U.S.C. section 415(c). The annual additions limit is significantly higher than the elective deferral limit, allowing CZ Marines to contribute more.

CZTE Traditional Tax-Exempt Contributions

A Marine in a CZ who reaches the annual elective deferral limit makes ADDITIONAL Traditional contributions from tax-exempt pay. Those contributions count against the annual additions limit but not the elective deferral limit. The withdrawals at retirement are still taxable on the earnings (the contribution amount is already tax-exempt).

Catch-Up Contributions

Per Chapter 51 paragraph 3.7, effective January 1, 2021, Marines age 50 or older in the calendar year participate in spillover catch-up contributions automatically. Once the elective deferral limit is reached, additional contributions spill over toward the catch-up limit. Spillover contributions are eligible for agency matching up to the 5 percent of pay match cap.

Higher Catch-Up Limit (Age 60-63)

Per paragraph 3.7.3, effective January 1, 2025, Section 109 of the SECURE Act 2.0 increased the catch-up contribution limit for Marines turning ages 60, 61, 62, or 63 in the calendar year. The limit is the greater of $10,000 or 50 percent more than the regular catch-up limit. Verify the current year amount at https://www.tsp.gov/.

Catch-Up and CZTE

Per paragraph 3.7.2, TSP cannot accept Traditional tax-exempt CZ contributions toward the catch-up limit. Catch-up contributions are also not allowed from bonuses, incentive pays, or special pays.

TSP Funds

Per Chapter 51 paragraph 3.3, Marines choose investments across the TSP funds.

• G Fund. Government Securities (no risk of loss, lower returns).
• F Fund. Fixed Income Index (bond market).
• C Fund. Common Stock Index (S&P 500).
• S Fund. Small Cap Stock Index.
• I Fund. International Stock Index.
• L Funds. Lifecycle Funds (target-date allocation).

Default Allocation for BRS Members

Per paragraph 3.3.2.1, new Auto-Enrolled BRS Members default to an age-appropriate L Fund (the target-date Lifecycle Fund matched to the Marine's age and expected retirement date).

Default Allocation for Non-BRS Members

Per paragraph 3.3.2.2, Marines NOT under BRS default to the G Fund. Non-BRS Marines should review and change the allocation through the TSP website.

Bonus and Special Pay Contributions

Per Chapter 51 paragraph 3.0, Marines elect to contribute a percentage of bonuses, incentive pays, and special pays to TSP. The election is made through MyPay.

To contribute bonuses, incentive pays, or special pays to TSP, the Marine must also be contributing a minimum of 1 percent of basic pay or inactive-duty pay (per the paragraph 5.1 NOTE for non-BRS, with similar guidance applying to BRS members).

A common strategy is to contribute high percentages of bonuses (up to 100 percent) to TSP, allowing the bonus to grow tax-deferred or tax-free (Roth) without consuming the elective deferral limit through basic pay contributions alone (limited by paycheck affordability).

TSP Loans

Per Chapter 51 paragraph 3.6, Marines apply for a TSP loan or hardship withdrawal in accordance with TSP regulations. Loans must be repaid through payroll deduction. Hardship withdrawals are not loans and have a 6-month suspension on contributions after the withdrawal.

Member Transfers Between Components

Per Chapter 51 paragraph 3.10, when Marines transfer between components or branches, TSP contributions continue. The Marine notifies the gaining servicing organization of the existing TSP contribution election.

A Marine who separates and rejoins after a break in service of 31 days or more signs up immediately to contribute to TSP. A Marine who separates and rejoins after less than 31 days resumes TSP contributions in the first pay period after rejoining.

A Marine who is also a federal civilian employee contributes under both programs but the annual contribution limits apply to the COMBINED accounts, not each separately.

TSP Reenrollment After Separation

Per Chapter 51 paragraph 4.9, a BRS Marine who separates and re-affiliates is re-enrolled in TSP at 5 percent regardless of any previous contribution election. Agency 1 percent and matching resume in the first pay period after re-entry.

Election and Allocation Through MyPay

Setting the Contribution Percentage

1. Log into MyPay at https://mypay.dfas.mil/.
2. Navigate to "TSP" under "Pay Changes."
3. Set the percentage of basic pay (and optionally bonuses, incentive pays, special pays) to contribute.
4. Choose Traditional or Roth allocation.
5. Save the change. The change takes effect the next pay period.

Setting Fund Allocation

Fund allocation is set on the TSP website at https://www.tsp.gov/, NOT through MyPay. Log into TSP with your TSP account credentials and update the contribution allocation.

Verifying TSP on the LES

A monthly LES check confirms TSP entries are correct.

Step 1. Pull Your LES

Through MyPay each payday.

Step 2. Verify the TSP Lines

The LES shows TSP contributions under the Deductions section. Common abbreviations.

• TSP TRAD or TSP TRADITIONAL. Traditional contribution.
• TSP ROTH. Roth contribution.
• TSP-U-1 ELC. TSP election update.

For BRS Marines, the agency contributions appear in a separate area or notation. Verify the agency 1 percent and matching contributions are flowing into your TSP account.

Step 3. Verify in TSP Account

Log into https://www.tsp.gov/ to verify the contributions arrived in your TSP account. Reconcile the LES deduction amounts against the TSP account contribution history.

Step 4. Resolve Discrepancies

For LES vs. MyPay election discrepancies, coordinate with your S-1 routing through DFAS Marine Corps Pay. For LES vs. TSP account discrepancies, contact ThriftLine at 1-877-968-3778.

Common Questions Marines Ask

I am a brand new BRS Marine. When does my TSP contribution start?

Per Chapter 51 paragraph 4.4.2, your auto-enrollment at 5 percent starts the pay period after your 60th day of service (calculated from PEBD). The agency 1 percent automatic contribution also starts day 60. The agency 4 percent match starts at the 24-month mark.

If I contribute only 3 percent, am I leaving money on the table?

Yes. Per Table 51-4, contributing 5 percent captures the full 4 percent agency match. Contributing 3 percent gets you only 3 percent matching. The match formula is 1:1 for the first 3 percent plus 0.5:1 for the next 2 percent, capped at 4 percent total. The 5 percent contribution rate is the sweet spot.

Should I choose Roth or Traditional?

Roth is generally preferred for younger, lower-rank Marines because. Pay basic income tax now at the lower rank rate, and pay no tax at retirement. Traditional is generally preferred for higher-rank Marines because. Defer the tax until retirement when the marginal tax rate may be lower. Combat zone deployments favor Roth because the contribution is tax-free going in (CZTE) AND tax-free coming out.

I am separating at the 22-month mark. Do I keep my agency contributions?

Per Chapter 51 paragraph 4.8.1, no. The agency 1 percent automatic contributions vest on the first day of the 25th month. Separating before 25 months forfeits the agency 1 percent. The agency matching contributions vest immediately, so any agency match received is yours.

I am in a combat zone. How much can I contribute to TSP?

Per Chapter 51 paragraph 3.2.2, the annual additions limit (much higher than the elective deferral limit) applies in CZ. You contribute additional Traditional tax-exempt amounts beyond the elective deferral limit, up to the annual additions limit. Verify the current year limits at https://www.tsp.gov/.

How do I change my fund allocation?

Through the TSP website at https://www.tsp.gov/, NOT through MyPay. Log into TSP with your TSP credentials. Navigate to "Investment Choices" and update the contribution allocation across the G, F, C, S, I, and L Funds.

Where to Go for Help

Routing by Issue

• TSP contribution percentage update. MyPay at https://mypay.dfas.mil/.
• TSP fund allocation update. TSP website at https://www.tsp.gov/.
• BRS opt-in eligibility (for grandfathered Marines). Coordinate with your S-1 against the BRS records.
• LES vs. TSP account contribution discrepancies. ThriftLine at 1-877-968-3778.
• LES vs. MyPay election discrepancies. Your S-1 routes through DFAS Marine Corps Pay.
• TSP loan or hardship withdrawal application. TSP website.
• DFAS Marine Corps Pay direct contact. Phone 1-888-332-7411 (DSN 312-571-9450 from overseas).

Where to Go Next on This Site

• Pay and Entitlements landing page lists all the pay topics.
• Continuation Pay covers the BRS-only mid-career bonus at 8-12 YOS.
• Federal and State Tax Withholding covers the parallel tax framework.

Related Roles

• Leaders coach BRS Marines on the 5 percent contribution sweet spot to capture the full match.
• Admin at S-1 supports TSP election questions and BRS opt-in records.
• Commanders endorse BRS retirement counseling at the unit level.

TSP is the BRS retirement engine. Contribute at least 5 percent to capture the full agency match. The 25-month vesting cliff for the agency 1 percent is the critical separation timing point. Roth and Traditional both have a place. CZ deployments favor Roth.