Twice-yearly TSP 'open season' limitations end July 1 Published Feb. 18, 2005 By Gerry J. Gilmore American Forces Press Service WASHINGTON (AFPN) -- Defense Department civilians and servicemembers building tax-free retirement accounts through the Thrift Savings Plan soon will be able to change their investment options at any time instead of just twice a year.Current biannual TSP "open season" investment-choice windows will end July 1, said Army Lt. Col. Janet Fenton, executive director of the Armed Forces Tax Council. TSP participants, she said, will be able to switch their retirement account options at any time.Colonel Fenton said "there's not going to be the two open seasons during the year" where people can sign up for the retirement savings and investment program, change their contribution levels or change investment options.Military people and civilians covered by the Civil Service Retirement System can contribute up to 10 percent of their paycheck to establish tax-free retirement accounts that grow from accumulated savings and investments in bonds, stocks and international funds. Employees covered by the Federal Employees Retirement System can contribute up to 15 percent in 2005. From 2006 on, no limit will apply to any participants in TSP.Another TSP change also slated to start July 1 gives participants the choice of having a financial manager automatically adjust how funds are invested as market conditions change, officials said."They'll move you from equities to bonds when you need to," Colonel Fenton said, which should assist participants in maximizing their contributions.Servicemembers have been eligible to establish tax-free TSP retirement accounts since January 2002, she said.Establishing a TSP account is a good idea even for those servicemembers who do not serve long enough to qualify for a pension, Colonel Fenton said. TSP funds accumulated during military service, she said, can be transferred to participating federal agency TSPs if a departing servicemember takes a government civilian job.And, TSP savings can also be rolled into nongovernment civilian employers' individual retirement accounts, the colonel said.