HRPAY 16-14, Thrift Savings Plan

Published: December 21, 2016
Effective: Pay Period 01, 2017

Summary

The January 2017 elective Thrift Savings Plan (TSP) deferral limit and catch-up contributions for TSP participants who are age 50 or older will remain the same as 2016.

Implementation

The elective TSP deferral limit will remain $18,000 in 2017. Employee contributions to TSP are limited only by the Internal Revenue Code restrictions. Employees should review their earnings and leave statement to ensure that their TSP contribution amount or percentage does not impact other deductions, such as Old Age, Survivors, and Disability Insurance (OASDI); Medicare; and/or retirement.

Additionally, the Federal Retirement Thrift Investment Board implemented Public Law 107-304, dated November 27, 2002, which allows eligible TSP participants age 50 or older to make tax-deferred catch-up contributions from their basic pay to their TSP account. These contributions are in addition to the participant's regular employee contributions and do not count against the Internal Revenue Code's elective deferral limit ($18,000 in 2017). However, the catch-up contributions have their own annual limit (remains $6,000 in 2017) and eligibility criteria.

Resources

The TSP Web site (www.tsp.gov) has several calculators that employees can use to maximize their contributions.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.