HRPAY 17-11, Thrift Savings Plan

Published: December 6, 2017
Effective: Pay Period 01, 2018

Summary

Employee contributions to the Thrift Savings Plan (TSP) are limited only by the Internal Revenue Code restrictions. Effective January 2018, the elective TSP deferral limit will increase from $18,000 to $18,500.

Note: There will be 27 pay dates in 2018. For those who plan to contribute the full Internal Revenue Service limit, the per pay period contribution may need to be adjusted.

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 ($18,500 in 2018). However, the catch-up contributions have their own annual limit (remains $6,000 in 2018) 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 National Finance Center (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 customer service portal.