Which program provides retirement income for active duty, guard, and reserve personnel?

Which program provides retirement income for active duty, guard, and reserve personnel?

• A. 401(k) Plan
• B. Pension
• C. Social Security
• D. Thrift Savings Plan (TSP)

Answer: (D)

The main idea here is that the Thrift Savings Plan is the government-backed retirement savings vehicle for uniformed services. It works like a 401(k): you contribute part of your pay, and the money grows over time in a tax-advantaged way (traditional pre-tax or Roth after-tax), helping you build retirement income during and after your military career. This plan is specifically designed for active duty, guard, and reserve personnel, making it the primary tool among the options for accumulating retirement funds while serving. A private-sector 401(k) is not the military’s official retirement program, a pension is a separate defined-benefit retirement benefit, and Social Security provides broad retirement benefits but is not the dedicated service-specific savings plan.

The main idea here is that the Thrift Savings Plan is the government-backed retirement savings vehicle for uniformed services. It works like a 401(k): you contribute part of your pay, and the money grows over time in a tax-advantaged way (traditional pre-tax or Roth after-tax), helping you build retirement income during and after your military career. This plan is specifically designed for active duty, guard, and reserve personnel, making it the primary tool among the options for accumulating retirement funds while serving.

A private-sector 401(k) is not the military’s official retirement program, a pension is a separate defined-benefit retirement benefit, and Social Security provides broad retirement benefits but is not the dedicated service-specific savings plan.