TSP vs IRA for Military Members

Maximizing your retirement savings beyond the pension

The Thrift Savings Plan (TSP) is the military's version of a 401(k), but should you also use an IRA? Here's how to decide.

TSP Advantages

• Low fees: 0.05% expense ratio vs 0.5-1% for typical funds
• Matching: Up to 5% under BRS
• High contribution limit: $23,500/year (2026)
• Roth option: Tax-free growth

When to Use an IRA

• You want more investment options
• You want easier access to funds
• You've maxed out TSP contributions

Recommended Strategy

1. Contribute 5% to TSP (get full match)
2. Max out Roth IRA ($7,000/year)
3. Increase TSP contributions if possible

Use Our Calculator

See how TSP matching affects your retirement in our High-3 vs BRS Calculator.