TSP contributioners can ‘catch-up’ for savings

| January 10, 2014 | 0 Comments

Defense Civilian Personnel Data System
Human Resources

Federal employees who participate in the Thrift Savings Plan and who will turn age 50 during the year are eligible to make TSP catch-up contributions.

“Catch-up contributions” are supplemental tax-deferred contributions that employees age 50 or older (or turning age 50 during the calendar year) can make to the TSP beyond the maximum amount they can contribute through regular contributions.

To be eligible to make catch-up contributions, you must meet the following parameters:

•Age 50 or older anytime during the calendar year in which the catch-up contributions are being made (even if you become age 50 on Dec. 31 of this year);

•Currently employed and in Pay Status;

•Making regular contributions to a civilian or uniformed services TSP account (or both), and/or an equivalent employer plan (such as 401(k), 403(b) or 408 plan that will equal the maximum allowed by the Internal Revenue Service.

You are not eligible to make catch-up contributions (or regular contributions) within six months of making a financial hardship withdrawal from the TSP, nor while in a “non-pay” status.

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