All qualified non-prior service recruits who enlist on active duty for a minimum of five years in an MOS (Army job) that the Army considers critical are eligible for the Thrift Savings Plan (TSP) Matching Fund Program incentive. This is a test program authorized by Congress, and the Army is currently the only service offering this incentive.
The Thrift Savings Plan is a Federal Government-sponsored retirement savings and investment plan. The TSP offers the same type of savings and tax benefits that many private corporations offer their employees under "401(k)" plans. TSP was extended to members of the uniformed services in October 2000. The standard TSP (without matching funds) is available to all military members, who may enroll in the program at any time during their enlistment. Military members can elect to contribute as much as 100% of their basic pay, including incentives, special or bonus pay, up to the annual IRS tax-deferred limit of $15,000.
Under the matching funds program, recruits who sign up for this initiative get the first five percent of their TSP contributions matched by the Army --dollar for dollar on the first three percent and then 50 cents on the dollar for the remaining two percent.
The matching fund incentive will stay in place for their entire first term of enlistment, 5-8 years. They will not get matching funds if they discontinue contributions to TSP during their initial term or if they re-enlist; it will only be matched for the original contract period.
The TSP incentive may be combined with other enlistment incentives.
Want to learn more about Army enlistment incentives? See our Army Enlistment Incentives Menu.
