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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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VAer1  
#1 Posted : Friday, June 12, 2020 3:10:06 AM(UTC)
VAer1

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https://www.tsp.gov/Plan.../contributionLimits.html

Could someone explain this table more?

1) Elective Deferral Limit: $19500: Does the amount include agency match? Or it only refers to employee contribution (then the total is greater than $19500 along with agency match)?

2) Annual Addition Limit: This is the most confusing part to me, what is it?

3) Catch-up Contribution Limit: Is everyone (> 50 yrs old) qualified? Is the age only requirement?

Thanks.
frankgonzalez  
#2 Posted : Friday, June 12, 2020 3:25:55 AM(UTC)
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1) Elective Deferral Limit: $19500: Does the amount include agency match? Or it only refers to employee contribution (then the total is greater than $19500 along with agency match)?
- Does not include the agency match. This is what you put in. This is the max you can put in your TSP (whether Ross, Traditional or Both combined).

2) Annual Addition Limit: This is the most confusing part to me, what is it?
- If you work for multiple agencies in a year (ie a Seasonal position as a Park Ranger, a Census position and then land a full time gig at a 3rd agency in when your Seasonal Position ends, then this the max than be put into TSP everything combined (your contributions and the Employer's match of your contributions)

3) Catch-up Contribution Limit: Is everyone (> 50 yrs old) qualified? Is the age only requirement?
- Yes..Age is the only requirement. This is above and beyond the above amounts.

Edited by user Friday, June 12, 2020 3:26:33 AM(UTC)  | Reason: Not specified

You should have voted Cthulu...the greatest of all Evils
VAer1  
#3 Posted : Friday, June 12, 2020 3:38:16 AM(UTC)
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Originally Posted by: frankgonzalez Go to Quoted Post
1) Elective Deferral Limit: $19500: Does the amount include agency match? Or it only refers to employee contribution (then the total is greater than $19500 along with agency match)?
- Does not include the agency match. This is what you put in. This is the max you can put in your TSP (whether Ross, Traditional or Both combined).

2) Annual Addition Limit: This is the most confusing part to me, what is it?
- If you work for multiple agencies in a year (ie a Seasonal position as a Park Ranger, a Census position and then land a full time gig at a 3rd agency in when your Seasonal Position ends, then this the max than be put into TSP everything combined (your contributions and the Employer's match of your contributions)

3) Catch-up Contribution Limit: Is everyone (> 50 yrs old) qualified? Is the age only requirement?
- Yes..Age is the only requirement. This is above and beyond the above amounts.


Thanks.

Annual Addition Limit: To be clear, if I work for only one agency during the year, my contribution limit is $19500; If I work for two agencies during the year, my total contribution limit is $39000 (19500*2), but no more than $19500 for each agency; If I work for three or more agencies during the year, my total contribution limit is $57000, but no more than $19500 for each agency.

Is it correct?

Edited by user Friday, June 12, 2020 3:40:28 AM(UTC)  | Reason: Not specified

VAer1  
#4 Posted : Friday, June 12, 2020 5:32:39 AM(UTC)
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Does TSP contribution limit count based on calendar year (January 1 - December 31)? Or based on pay period (PP 1 to PP26)?

Thanks.
TheRealOrange  
#5 Posted : Friday, June 12, 2020 6:33:38 AM(UTC)
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Originally Posted by: VAer1 Go to Quoted Post
Does TSP contribution limit count based on calendar year (January 1 - December 31)? Or based on pay period (PP 1 to PP26)?

Thanks.

It's annual by calendar year. For me that has generally meant pay periods 25 and 26 of the previous year, which were paid in the current year, plus pay periods 1 through 24 of the current year. That will vary from year to year.
TheRealOrange  
#6 Posted : Friday, June 12, 2020 6:35:51 AM(UTC)
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Originally Posted by: VAer1 Go to Quoted Post
Annual Addition Limit: To be clear, if I work for only one agency during the year, my contribution limit is $19500; If I work for two agencies during the year, my total contribution limit is $39000 (19500*2), but no more than $19500 for each agency; If I work for three or more agencies during the year, my total contribution limit is $57000, but no more than $19500 for each agency.

Is it correct?

No. From TSP: "For 415(c) purposes, working for multiple Federal agencies or services in the same year is considered having one employer." All federal work is considered to be for one employer.
frankgonzalez  
#7 Posted : Friday, June 12, 2020 6:36:41 AM(UTC)
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Originally Posted by: VAer1 Go to Quoted Post
Originally Posted by: frankgonzalez Go to Quoted Post
1) Elective Deferral Limit: $19500: Does the amount include agency match? Or it only refers to employee contribution (then the total is greater than $19500 along with agency match)?
- Does not include the agency match. This is what you put in. This is the max you can put in your TSP (whether Ross, Traditional or Both combined).

2) Annual Addition Limit: This is the most confusing part to me, what is it?
- If you work for multiple agencies in a year (ie a Seasonal position as a Park Ranger, a Census position and then land a full time gig at a 3rd agency in when your Seasonal Position ends, then this the max than be put into TSP everything combined (your contributions and the Employer's match of your contributions)

3) Catch-up Contribution Limit: Is everyone (> 50 yrs old) qualified? Is the age only requirement?
- Yes..Age is the only requirement. This is above and beyond the above amounts.


Thanks.

Annual Addition Limit: To be clear, if I work for only one agency during the year, my contribution limit is $19500; If I work for two agencies during the year, my total contribution limit is $39000 (19500*2), but no more than $19500 for each agency; If I work for three or more agencies during the year, my total contribution limit is $57000, but no more than $19500 for each agency.

Is it correct?
No..annual addition limit includes the employer match...so once you hit this limit with the employer match, no more can go in. The same is true of once you hit the $19.5k during the year, there is no more employer match, so you need to make certain you don't go over that in the year.

You should have voted Cthulu...the greatest of all Evils
VAer1  
#8 Posted : Friday, June 12, 2020 6:40:27 AM(UTC)
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Thank you, everyone.
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