From 2015 to 2017, there were no changes made in the annual amount that a federal employee could contribute to their Thrift Savings Plan (TSP) account. Unless you turned 50 in one of those years and suddenly had to account for catch-up contributions, the maximum amount to put towards retirement sat stagnant at $18,000 per year. When there is an increase in the amount that a federal worker can put into their plan, the dollar amount actually paid by the employee doesn’t increase unless directed by the individual. One way to make the change is via your agency-specific electronic system, and another way is to send a form TSP-1 (TSP-U-1 for Armed Services) directly to the TSP. It is important to have the changes made by the first paycheck of the year because (as emphasized in an article from the Fed-Zone) making the maximum amount each paycheck is the only way to receive the full employer match from the Government.
Until Next Time,
**Written by Benjamin Derge, Financial Planner. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
Changing TSP Contribution