Last TSP Open Season Drawing to Close

Effective at the end of this month, the Thrift Savings Plan’s long-standing practice of conducting twice-yearly open seasons will end. The open seasons traditionally had been the only time that employees could change the amounts of their ongoing investments, join the program if they previously had not been participating, or rejoin it if they had been participating and stopped. The end of the open seasons means that those restrictions are lifted. However, a six-month waiting period for those who have taken hardship in-service loans remains, and government contributions for newly hired employees still won’t start for periods that could reach close to a year. Also, under the new policy, elections typically will take effect no later than the first full pay period after they are filed; under the open season policy, there was a longer lag before the elections became effective. “Catch-up” contributions, for those 50 and above in a given calendar year, have never been subject to an open season, and thus are not affected by the open season repeal.