Last week, the Investment Company Institute (ICI), a financial industry association representing mutual fund managers, published a “research” paper about the TSP, titled The Federal Thrift Savings Plan: Can It Be Duplicated? In it, the ICI says the TSP “is often portrayed as a standard for all participant-directed retirement plans…the TSP is a unique arrangement that cannot be compared with or duplicated by 401(k) plans.” This is empty rhetoric from a group representing companies that would lose revenue if more 401k plans adopted a TSP-like investing approach. Small businesses can absolutely have a 401k plan similar to the TSP. And I’m happy to explain how.
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