Sorry, Kharn, you're incorrect.
The air force at least doesn't match anything, at least yet. The services do have the option of matching funds, but I'm not aware of any doing it. I'm currently contributing 5% and get no match. I'm concentrating more on Roth IRA's, as I usually get the tax credit, giving me back $100-200. The credit(means you get back amount) is dependant upon income, but if you're junior enlisted you definitly qualify for it.
Contributions made in a tax free status is tax free period, while normal contributions are tax differed.
There are five funds, and they just added a sort of sixth this year. They're listed in descending order for stability, and roughly ascending in order of potential returns
G: Government Securities Investment Fund: Federal savings bonds. Average lowest returns, but very very stable
F: Fixed Income: Bond index fund
C: Common Stock: S&P 500 index fund
S: Small Cap: index fund that tracks Dow Jones Wilshire 4500 Completion
I: International Stock Index fund
L: Life cycle funds. You tell it when you anticipate retirement and it automatically puts you into a fund that invests between the other 5, balancing potential gains and risk, concentrating on growth early on, tending towards maximum stability as you reach retirement age.
There are a couple ways to get the money out, for education as an example, but you have to be careful. Ask your local financial advisor for more details. You can also take out a load against the money invested for a first home.
You can also hit up
www.tsp.gov for more information.