Catch-Up Contributions Ahead at DoD

The Defense Department has said it will begin allowing its employees who are age 50 and older this year to make “catch-up” contributions into the Thrift Savings Plan effective with the September 7-20 pay period, meaning the program is starting there about a month later than in other agencies. The catch-up contribution form, TSP-1-C, has been available since early July, and other agencies are to begin processing enrollee elections as early as the first pay period of this month. However, DoD could not get its payroll processing systems updated on time. The catch-up program allows contributions of $2,000 this year over and above any percentage of salary-8 percent for CSRS employees and 13 percent for FERS this year-or dollar amount ($12,000 this year) limits applying to the investor. Also, the investor must be actively employed, not retired, and must not be in the waiting period on investing imposed on those taking out financial hardship withdrawals.