Fedweek

One group that should pay special attention in the closing days of the current TSP open season is highly paid FERS employees who might bump against the program’s dollar investment maximum (currently $10,500). Because the FERS investment maximum is 10 percent of salary, FERS employees making $105,000 or more might reach that limit. They should make sure during this open season that their TSP investment withholdings are structured so that they can continue making investments through the end of the calendar year. If they hit the limit before the end of the year, they no longer will be able to make investments through the remainder of the year and their agency matching contributions (but not the automatic 1 percent of salary contribution) will cut off.