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The Thrift Savings Plan (TSP) is a retirement savings plan for federal employees and members of the military. It is similar to a 401(k) plan in the private sector. One of the options for receiving retirement benefits from the TSP is through the Retirement Default Annuity, which is a fixed payment made to the retiree on a monthly basis for the rest of their life. While the Retirement Default Annuity may seem like a secure and guaranteed source of income in retirement, it has some drawbacks that retirees need to be aware ...
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