How does the TSP match work for federal employees and service members?

Under the Federal Employees Retirement System (FERS) and the military Blended Retirement System, the government contributes generously. FERS employees get an automatic 1% of pay regardless of whether they contribute, plus a match on the first 5% they defer: dollar-for-dollar on the first 3% and 50 cents on the next 2%. Contribute at least 5% and you receive an effective 5% match on top of the automatic 1%.

Contributing less than 5% forfeits free money, so 5% is the minimum every eligible federal worker should defer. Note that agency automatic and matching contributions historically flow into the traditional (pre-tax) balance even if your own contributions are Roth. Confirm your current match status in your TSP account, and never leave the full government contribution unclaimed.