TSP investors who could be affected by that problem (see item 4 above) might want to use one of two approaches. First, they can designate a dollar amount to be withheld each pay period so they don’t hit the limit until the very end of the year and the government puts in its maximum contributions all year long. For 2000, assuming someone who will have 26 pay periods in the year, that works out to a biweekly investment of $404. For those with 27 pay periods, the figure is $389 (some employees have 26 pays this year, others 27, depending on pay cycles; check with your payroll office). Or, they can invest 10 percent of salary early in the year, and then adjust their investments in the mid-year TSP open season to make sure they don’t hit the limit until the very end of the year. That calculation can be a tricky one, but doing it that way has the advantage of getting their money into the TSP sooner.
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