New TSP Catch-Up Elections Needed

Actively employed Thrift Savings Plan investors who are 50 or older during calendar year 2004 are allowed to make “catch-up” contributions of up to $3,000 for the year, although they will have to file a new application to do so even if they made a catch-up contribution for calendar year 2003. Catch-ups are made by filing form TSP-1-C. However, unlike regular contributions, catch-up contributions do not carry forward from one year to the next. Also, catch-up contribution elections can be made at any time, unlike regular elections that must be made during one of the twice-yearly TSP open seasons. Another special consideration is that catch-up contributions can be made before the person turns 50, so long as the individual will reach that age during the year. Catch-up contributions are over and above the percentage of salary (9 percent for CSRS, 14 percent for FERS) or dollar amount ($13,000 in both systems) limits that apply to regular TSP investments.