Catch-Ups Also Allowed

The TSP last year started allowing actively employed investors age 50 and older to start making “catch-up” contributions, with a maximum $3,000 this year. Catch-up contributions are over and above the percentage of salary or dollar contribution limits that otherwise apply, and are made by filing a separate form, the TSP-1-C; contrary to what some investors still believe, catch-ups are not made by increasing regular contributions. Catch-up elections do not need to be made during an open season but instead can be made at any time during the year. Also, investors don’t have to be 50 before making the contribution but are eligible so long as they will be 50 during the calendar year. Retirees are not eligible to make catch-up or regular contributions.