Q. This is in regards to my last paycheck and lump-sum payment for the 440 hours of annual leave that I will have by the end of the year:
I am a FERS employee and plan to retire on Dec. 31, as it is listed as one of the best days to retire. With this retirement date, I will not receive my final paycheck and lump-sum payment for annual leave until sometime in 2016. Can I have $24,500 ($18,000 plus $6,500) of these final payments placed into my TSP for 2016 contributions since I will not be paid this money until 2016?
A. You may defer money from you final paycheck into the TSP, as usual, but not from the lump-sum payment, which is considered severance by the IRS.
