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Individual TSP Funds. 1  G Fund - Government Securities fund. The G Fund (think G for government securities) is invested in very short-term U.S. Treasury securities (bonds) guaranteed by the federal government. 2  F Fund - Fixed Income Index fund.
TSP is a tax-deferred fund, which means the money contributed to the account is deducted right away from the persons taxable income, and the money in the fund isnt taxed until it is withdrawn at retirement, usually after age 59 1/2, which is a significant tax reduction. According to Army Maj.