One group of employees should exercise special care in the current open season for the Thrift Savings Plan. These are highly-paid employees under the FERS retirement system, who might want to adjust their investments because of their 2000 raises and the new limit on annual TSP investments–$10,500. That limit is important to them because someone making more than $105,000 in 2000 would bump into the limit by investing the 10 percent of salary maximum allowed under FERS. The potential trap is that if they are unable to continue making investments later in the year once they hit the dollar limit, agency matching contributions would stop, as well. The automatic 1 percent of salary government contribution would continue, but the other 4 percent of salary government contributions would cut off.
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