HRPAY 19-16, Thrift Savings Plan
Published: December 20, 2019
Effective: Pay Period 01, 2020
Employee contributions to the Thrift Savings Plan (TSP) are limited by Internal Revenue Code (IRC) restrictions. Effective January 2020, the TSP elective deferral limit will increase from $19,000 to $19,500.
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 IRC's elective deferral limit ($19,500 in 2020). However, the catch-up contributions have their own annual limit ($6,500 in 2020) and eligibility criteria.
Employees can maximize their contributions by ultilizing several calculators via the TSP Web site (www.tsp.gov).
For questions about National Finance Center (NFC) processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center ator via the customer service portal.