TSP Catch-Up Reminder

TSP participants who are age 50 or older, or who will be by the year’s end, still have time to make “catch-up” contributions to their accounts, although time is running short to get it done. Catch-up contributions of up to $5,000 are allowed for those at that age threshold and who have already reached the standard TSP maximum contribution of $15,000 (this year; it rises to $15,500 next year) or who are on a pace to reach it by year’s end through their regular contributions. There are certain other restrictions that apply only in a small number of cases. Catch-ups are over and above that limit and must be elected separately. They can be divided up among as many pay periods as the participant chooses, although there are now only a few pay periods left in 2006. There is no government match on catch-up contributions.