TSP Catch-Up Contributions Reminders

Employees are eligible to make catch-up contributions to their Thrift Savings Plan accounts of up to $4,000 if they are already age 50 or will turn 50 in 2005. In addition, they must be making contributions to their regular TSP account at either the maximum percentage allowed by their retirement plan or an amount that will result in reaching the IRS annual elective deferral limit ($14,000 for 2005) by the end of the year, must be in a pay status, and may not be in the six-month non-contribution period following a financial hardship in-service withdrawal. Catch-up contributions are over and above the normal dollar cap or percentage of salary limits.