We get both. A 401k equivalent called TSP (Thrift Savings Plan) and FERS. People hired after a certain year ( i wanna say 2011 or 2013) pay substantially more into FERS than people hired before (less than 1% vs 4.3% of pay). I don’t expect either to pay out in my lifetime tbh.
TSP is also unique in that you can take a loan from it directly, not using it as colateral. Any interest paid goes right back into your TSP.
Neither of those are unique from a majority of 401(k) plans in the U.S - taking out a loan against it included.
You’ll still take a sizeable tax hit on an early distribution from any retirement plan - TSP included. You should be able to do a direct rollover to any active 401(k), 403(b), or IRA penalty free.
I worked in the government for 5 years, and a financial planning firm for just about 2.
We get both. A 401k equivalent called TSP (Thrift Savings Plan) and FERS. People hired after a certain year ( i wanna say 2011 or 2013) pay substantially more into FERS than people hired before (less than 1% vs 4.3% of pay). I don’t expect either to pay out in my lifetime tbh.
TSP is also unique in that you can take a loan from it directly, not using it as colateral. Any interest paid goes right back into your TSP.
This is also an option if jumping ship:
https://www.opm.gov/frequently-asked-questions/retire-faq/leaving-the-government/how-do-i-apply-to-have-my-retirement-contributions-refunded-to-me-in-a-one-time-payment/
Neither of those are unique from a majority of 401(k) plans in the U.S - taking out a loan against it included. You’ll still take a sizeable tax hit on an early distribution from any retirement plan - TSP included. You should be able to do a direct rollover to any active 401(k), 403(b), or IRA penalty free. I worked in the government for 5 years, and a financial planning firm for just about 2.