TSP Catch-up Elections Still an Option, But Not for Long

Active employees who are age 50 or above, or who will be before the end of the year, and who wish to make “catch-up contribution” investments into the TSP still have time to make those investments before the end of the year, but time is running out. Catch-ups are allowed if an eligible individual has hit the annual dollar TSP limit ($18,000 this year) or is on an investing pace to do so by the end of the year. The maximum allowable catch-up is $6,000 this year. The investments must be made from payroll withholding, so to take the most advantage of the benefit with only a few pay periods left in the year, investors would have to order a large biweekly withholding, assuming they could live on the reduced income for that period.