TSP Catch-Up Misunderstandings

Although the opportunity to make “catch-up” contributions to the Thrift Savings Plan is still several months away, some TSP participants apparently tried to get an early start on the program. The TSP in July will begin accepting catch-up contributions of up to $2,000 this year by those age 50 or older during the calendar year, over and above the percentage of salary-13 percent for FERS and 8 percent for CSRS-or dollar amount –$12,000 for each-limits applying to them. The catch-up contributions will be accepted only through a new form, to be called the TSP-1-C, that is not yet available. Filing that form will cause a separate deduction from pay into the TSP account. Investors will be able to elect a dollar amount investment only, with the deductions starting as soon as the first full pay period of August.