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A Simple Change to Your TSP Contributions Could Save You Money

Keep that in mind

Security
DA
Tue Jan 6, 2009 8:18 AM

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If I am fortunate enough to make close to that amount of money someday, I'll try to keep that in mind. In the mean time, as a rank-and-file employee I will stick with a percentage that I could afford to contribute.

TSP Allocation

Program Manager
Air Force
Tue Jan 6, 2009 8:54 AM

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I am not sure about your math in contributing the maximum to TSP. I invest the max each year and this year I have allocated $635.00 per pay period to meet the IRS limit of $16,500 and still get my agency match.

THRIFT SAVINGS

PROGRAM SPECIALIST
OSM
Tue Jan 6, 2009 10:13 AM

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There should be a change in the regulations that allow for CSR contributors to get matching funds such as those in FERS. This has never been right that those who are under the former CSR do not get dollar for dollar match. I am surprised they agreed to let us even contribute.

Re: THRIFT SAVINGS

Engineer
DOT
Tue Jan 6, 2009 12:37 PM
You had your chance to convert from CSRS to FERS and get those matching contributions. Sometimes you have to choose "cup or cone" and live with the decision.

Re: THRIFT SAVINGS

Federal Career Intern
HUD
Tue Jan 6, 2009 1:19 PM
And yet the CSRS has a much more generous retirement plan. It sounds like you want your cake and to be able to eat it too!

Re: THRIFT SAVINGS

Analyst
federal
Tue Jan 6, 2009 1:31 PM
If that change comes, then FERS employees should have their retirement annuity factored by 1.7% of their high 3 average too!!!

Re: THRIFT SAVINGS

Thorn in the Side
DOD
Tue Jan 6, 2009 2:41 PM
It has never been right that FERS people have to gamble to finance their retirement, but they do. If you'd like to trade, let me know.

Re: THRIFT SAVINGS

Wanna be CSRS
USDA
Wed Jan 7, 2009 8:51 AM
Sounds like I'm not the only one who wants to tell Program Specialist at OSM to stop whining. In addition to the points brought up by the other commenters about the benefits of CSRS vs. FERS, you also get to have your unused sick leave added to your retirement calculation for years of service. Those of us under FERS get to lose our unused sick leave. Program Specialist...you should be kicked into the private sector if you can't see what you have to be thankful for.

Re: THRIFT SAVINGS

Program Mgr
Forest Service
Wed Jan 7, 2009 3:03 PM
Thank you for this advice! My husband will be serving on a PRT in Iraq for 2009 and we will max out salary and TSP.
This advice is huge! Thank you!
We made the change today.

TSP Maximum Matching Contribution

Implementation Manager
VA
Tue Jan 6, 2009 10:30 AM

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Is the maximum matching amount 16,500 for employees who are participating in catch up contributions, or will the additional amount be matched also?

Re: TSP Maximum Matching Contribution

Management Analyst
DOD
Tue Jan 6, 2009 1:24 PM
Matching is up to 5% of your salary. Nobody in CS makes near the amount where 16500 would represent 5% ($330,000). Catch-up contributions are not matched just like any regular TSP contribution above 5% of you salary is not matched. It's just an additional amount those 50 and older can contribute above the normal limit.

Math error

Director of Logistics
USN
Tue Jan 6, 2009 10:46 AM

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The mathi in paprgraph 3 is correct....the deferral amount is incorrect.

Should read 16500/26 = 634 The limit is 16500, not 16000 which divided by 26 is 634 vice 615.

Catch-up Contributions

Program Technician
FSA
Tue Jan 6, 2009 11:35 AM

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How do you add the additional $5500 in catch up contributions? Do you take the amount out of your pay check or do you send a personal check or what? And how is it tax deferred?

Re: Catch-up Contributions

FED
DEPT
Tue Jan 6, 2009 12:06 PM
$5500/26=$212 (rounded up)

Re: Catch-up Contributions

Management Analyst
DOD
Tue Jan 6, 2009 1:19 PM
The year you are to turn 50 the ability to make catch-up contirbutions is available in EIBS for Army employees. For your particular agency go to where you make TSP contribution changes (Not TSP website). To maximize the 5500 limit contribute $212 per pay period. To maximize the $16,500 limit you should have done 635 per pay period. For Dept of Army employees they can reference a DFAS provided chart on amounts to deduct based on when you make changes.

Re: Catch-up Contributions

manager
ssa
Tue Jan 6, 2009 1:24 PM
You sign up in the catch up for tsp in employee express if your agency uses it. If not find out from some one with that knowledge in your benefits dept. It is tax defered as it comes oout of your pre tax salary just like your health benefits and your reg tsp contributions. This is a great thing to do if you can afford it and are 50 or over.

Affording more TSP contributions

Manager
NIH
Tue Jan 6, 2009 1:37 PM

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I have slowly increased my contributions over the years. I started with the minimum to get the full match, contributing 5% to get the full 5% match. Whenever I got a yearly pay increase or within grade increase, I increased my percentage contribution. Since this comes out before taxes, for every $100 I put into the TSP, my take-home pay dropped less than that (maybe only $75?). Money I never "saw" as take-home pay, I never missed. I now contribute the maximum. I know not everyone can do so, but everyone can follow this sort of plan gradually to save more money without suddenly feeling poorer.

Total Comments: 39
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