TSP Match Maximizer: The 5% You Cannot Leave Behind
Example: Annual basic pay: 55000 $ · Your current TSP contribution: 3 % · Years remaining to serve: 15 yrs · TSP investment growth rate: 7 %/yr
| Future-value cost of under-contributing | $14,788 |
| Match you ARE earning ($/yr) | $1,650 |
| Match forfeited over career (nominal) | $8,250 |
| Match you ARE earning (grown to retirement) | $44,365 |
Worked example
At $55,000 basic pay contributing 3%, you earn $1,650/year in match (3% × $55k) but forfeit $550/year (the 50c on the next 2% = 1% × $55k). Over 15 years at 7% growth, that forfeited $550/year grows to roughly $13,800 of future retirement wealth you never collect. Bumping your contribution from 3% to 5% costs you about $46/month after-tax but captures every penny of the match.
Frequently asked questions
How does the BRS TSP match formula work?
Under BRS: the government contributes 1% of basic pay automatically (regardless of your contribution), matches 100% of your first 3%, then matches 50% of your next 2%. Maximum government match is 4% when you contribute 5%. The automatic 1% contribution is not matched — it is free money on top.
What if I am not in BRS?
Legacy High-3 members receive no TSP employer match. If you are under Legacy, this calculator does not apply to matching — but you can still use it to model the growth of your own contributions.
What TSP fund should I invest in?
TSP offers five core funds (G, F, C, S, I) and lifecycle L Funds. For long time horizons, historical data shows higher growth in equity funds like C (tracks S&P 500) and S (small-cap). The L Fund auto-adjusts as your target date approaches. The right allocation varies by your risk tolerance and time horizon.
Is there a 2025 contribution limit for TSP?
Yes. The 2025 TSP elective deferral limit is $23,500 for those under age 50, and $31,000 for those 50 and older (catch-up contributions). The employer match does not count against this limit.