Categories: Fedweek

TSP Catch-up Contributions Reminder

Employees who are age 50 or above, or will be before the end of the year, and who have already hit the dollar limit of $17,500 or are on an investing pace to do so by the end of the year, may wish to investigate making TSP "catch-up contribution" investments. Those investments are above the normal dollar limit but must be elected separately and carry no matching government contributions for FERS employees. Unlike regular TSP investing, catch-up elections do not carry over from one year to another, so eligible persons who made such investments last year have to submit a new election for this year. The maximum this year is $5,500; that similarly is a combined total for those who invest in both traditional and Roth balances. An election for a catch-up can be made at any time, but the farther into the year an investor waits, the larger the biweekly amount would have to be in order to reach the maximum.

 

FEDweek Newsletter
Veteran insight on your federal pay, benefits, career and retirement!
Share