TSP Catch Up Form Submission Timing

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When do you submit your TSP-1-C form in order for it to take effect the first pay period of the year you turn 50 (in order to average out to $231/pay period to maximize $6000)? I turn 50 next year and want to start taking out the catch up the first pay period of 2018.

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Posted by (Questions: 1, Answers: 0)
Asked on November 3, 2017 8:55 pm
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In your first year of making catch-up contributions, you will not be able to contribute for the full 26 pay dates. We need to look at the day you are paid your salary, rather then the beginning or ending date of a pay period. Ask your Human Resources Office which pay 2017 period will be the first one that will be paid out in calendar year 2018. I suspect that their answer will be pay period 25 of 2017. You won’t be attaining the age of 50 in 2017 and the TSP will not let you make catch up contributions until the start of calendar year 2018, causing you to miss two pay dates early in the year.
After you get the answer from HR, you will know how many pay dates there are in 2018 and you will be able to adjust your catch up contributions to the correct amount (e.g., $250 per pp if there are 24 remaining pay dates, etc.)

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Posted by (Questions: 0, Answers: 61)
Answered on November 4, 2017 11:41 am