How Many TSP Millionaires Are There?

The Thrift Savings Plan (TSP) serves as a significant retirement savings and investment vehicle for federal employees and members of the uniformed services. This article examines the number of individuals who have achieved millionaire status within the TSP and explores the factors contributing to the growth of these accounts.

Current Figures for TSP Millionaires

The number of TSP accounts holding a balance of $1 million or more has seen considerable fluctuation, reflecting market performance. As of June 2025, the number of TSP millionaires reached a record high of over 171,000. This figure follows a recent dip in early 2025.

This group represents a small percentage of the total TSP participant base, which includes approximately 7.2 million accounts. Historical data indicates a significant increase in this demographic over time, from 208 millionaires in 2011 to over 116,000 by 2023. The average years of contribution for accounts reaching $1 million or more is approximately 28.62 years, illustrating the long-term nature of this achievement.

Fundamentals of the Thrift Savings Plan

The TSP is a retirement savings program designed for federal civilian employees and uniformed service members, operating similarly to a private sector 401(k) plan. Participants can contribute through pre-tax contributions, reducing taxable income, or through Roth contributions, made with after-tax dollars for tax-free withdrawals in retirement. For employees covered by the Federal Employees Retirement System (FERS), the government provides an automatic 1% contribution of basic pay to their TSP account, even if the employee does not contribute.

FERS employees also receive agency matching contributions. The first 3% of an employee’s pay contributed receives a dollar-for-dollar match, and the next 2% receives a 50-cent-on-the-dollar match. Contributing at least 5% of basic pay secures the maximum agency matching funds, totaling 5% (1% automatic plus 4% matching). The TSP offers a selection of low-cost index funds for investment.

These include the G Fund, which invests in special U.S. Treasury securities and offers principal protection, and the F Fund, which tracks a broad U.S. bond market index. Stock-based options consist of the C Fund, tracking the S&P 500, the S Fund, investing in small to medium-sized U.S. companies, and the I Fund, which holds international stocks. The TSP also provides Lifecycle (L) Funds, which are target-date funds that automatically adjust their asset allocation by investing in a mix of the five core funds based on a participant’s projected retirement date.

Elements Driving TSP Account Growth

Consistent and substantial contributions play a primary role in accumulating significant TSP balances. Participants who regularly contribute a high percentage of their income, especially enough to maximize agency matching contributions, build their principal more rapidly. For 2025, the regular TSP contribution limit for most employees is $23,500, with an additional $7,500 catch-up contribution permitted for those aged 50 or older. These limits allow for considerable annual savings.

The power of compounding returns is another driving force behind account growth. Earnings on investments generate their own earnings over time, accelerating wealth accumulation, particularly over a long investment horizon. Many TSP millionaires have invested consistently over decades, allowing their assets ample time to grow.

Strategic investment choices within the TSP also influence account growth. While the G Fund offers capital preservation, the stock funds (C, S, and I Funds) and the diversified L Funds offer greater potential for long-term growth. Many participants utilize L Funds for their professionally managed asset allocation, which automatically rebalances to maintain a target risk level. The TSP’s exceptionally low administrative fees and expense ratios further enhance long-term growth by minimizing costs that would otherwise erode returns.