December 12, 2013
7:40 a.m.
Subject: Thrift Savings Plan Contributions
The new tax year for Thrift Savings Plan (TSP) contributions begins Pay Period 25 of 2013 and ends Pay Period 24 of 2014.
You may contribute up to $17,500 in employee contributions to the TSP in 2014. The limit applies to the combined total of your tax-deferred traditional and Roth contributions. (This limit has not changed from 2013.) If you are a member of the uniformed services, you may contribute a total of $52,000 in tax-deferred and tax-exempt money. (The 2013 limit is $51,000.) Any participant who will be age 50 or over in 2014 may also contribute up to $5,500 in additional catch-up contributions, as long as regular contributions for the year are expected to reach the $17,500 limit. (This limit has not changed from 2013.) .
Regular Employee Contributions
You can begin making regular employee contributions at any time. These are payroll deductions that are made from your basic pay. Each pay period, your contribution to the TSP will be deducted from your pay in the amount or percentage that you indicated when you submitted your contribution election information. The agency will continue to deduct your contribution until you:
- Make a new election changing the amount, or
- Elect to stop your contributions, or
- Reach the IRS contribution limit, or
- Take a financial hardship withdrawal
Catch-Up Contributions
You can begin making catch-up contributions at any time beginning in the year you turn 50. Catch-up contributions are also deducted from your pay. To be eligible to make catch-up contributions, you must expect to contribute the maximum amount allowed of regular employee contributions for the year to the TSP. Your catch-up contributions will stop automatically when you reach the catch-up contribution limit or at the end of the tax year, whichever comes first. You must make a new catch-up contribution election each year. Be aware that if you are a FERS participant, you will not receive matching contributions on any catch-up contributions that you contribute to the TSP.