If FERS investors hit the dollar cap before the last pay period of the year, their own investments will shut off until next year and so will government matching contributions worth up to 4 percent of salary (although the automatic 1 percent of salary government contribution for FERS employees would continue). Once lost, matching contributions can’t be recouped. To prevent that from happening, investors might need to make a new investment allocation. Employees might wish to discuss the situation with their payroll offices, to determine how many distribution dates will remain in the year by the time they make a change, in order to set up their TSP payroll withholding to their best benefit.
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