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Federal Employees Benefits Q &A

Do you have questions about your federal employee CSRS or FERS pension/annuity or federal employee retirement planning? Concerns about your Thrift Savings Plan (TSP) account or what about federal employee pay and leave issues?

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The Q&A forum is moderated by Ed Zurndorfer -- an expert on federal employee benefits -- and a Certified Financial Planner, chartered life underwriter and chartered financial consultant in Maryland.

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#1 Posted : Thursday, November 28, 2019 12:35:50 PM(UTC)

Rank: Newbie

Groups: Registered
Joined: 8/26/2019(UTC)
Posts: 7
United States
Location: Chicago, Illinois

Assuming a FERS employee is contributing at least five percent of basic pay to the TSP, how are agency matching contributions treated
when there are two subaccounts in the employee TSP account - a traditional TSP and a Roth TSP?

I understand that the agency contributions are pre-tax and therefore cannot be deposited into the Roth TSP, but are they then deposited into the Traditional TSP **if the employee's contributions during that year are all going into the Roth TSP**?

In other words, for 2020, I may cease contributions into my Traditional TSP and only have them go into the Roth TSP. Will I continue to receive my agency matching contributions? (assuming I am still contributing at least five percent)

Thank you
Ed Zurndorfer  
#2 Posted : Friday, November 29, 2019 12:06:06 PM(UTC)
Ed Zurndorfer

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No matter which TSP account (traditional or Roth, or a combination of both) a FERS-covered employee contributes to, the employee's agency will always contribute both the automatic (one percent of the employee's SF 50 salary) and matching contributions to the employee's traditional TSP account. The agency contributes nothing to the employee's Roth TSP account.
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