Last Chance on TSP Open Season

The current Thrift Savings Plan open season closes June 30, and with it one of the twice-yearly opportunities to either join the program or to change the level of ongoing investments. That’s especially a consideration for FERS employees making $92,857 or more this year, who may need to adjust their investment levels in this open season to make sure they can continue investing at least 5 percent of salary through the remaining pay periods of the year. Those above that level who have been investing at high percentage rates-the FERS maximum currently is 14 percent of salary biweekly–could hit the tax code dollar cap of $13,000 before the end of the year, meaning their contributions, and the associated matching government contributions, would shut off until 2005. Congress is considering legislation to end the practice of holding TSP open seasons, which would allow employees to join the TSP or to change the amounts of their investments at any time. The next TSP open season is set to run October 15-December 31.