Catch-Up Contributions on Horizon

Starting next month, Thrift Savings Plan participants who are age 50 and older this year may make “catch-up” contributions over and above any percentage of salary or dollar limits applying to them, beginning with a maximum $2,000 contribution this year. The earliest effective date will be the first full pay period of August, so individuals wishing to make the catch-ups might have to calculate carefully how much to deduct per pay period if they wish to spread the cost out over the remainder of the year. Catch-ups will be made through a new form, the TSP-1-C, and can be made at any time-they are not tied to the TSP’s twice-yearly open seasons. An individual could start and stop catch-up contributions several times during a year, although with 2003 being more than half over by the time the program starts, that might not be a consideration this year.