The midpoint of the year is a good time for FERS employees to check to make sure they won’t lose government contributions to their TSP accounts due to hitting the annual investment dollar limit too early. The cap this year is $18,000 (a combined limit for both traditional pre-tax TSP investing and after-tax Roth investing, for those making both types). FERS investors should take care to structure their investments so that they can continue investing at least 5 percent of salary, the amount that produces the maximum government contribution, through every pay period of the year. Some employees invest at high rates early in the year in order to get money in the TSP sooner and take advantage of potential tax-advantaged growth for longer periods—that is, “front-loading” their investments. Especially those FERS employees who have been doing so might want to examine their situation around now. There is no similar consideration for CSRS investors, who get no government contributions.
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