TSP matching contributions


Q. I am a special agent with Homeland Security Investigations in New York. If I were to retire at the end of March (due to reaching my maximum retirement age of 57 years old), would I receive a full agency match to my TSP if I were to maximize my contributions in the three short months? In other words, if I maximized my TSP contributions from January to March and put in the full $24,000 (with catch-up contributions), would my agency match be fully funded (which usually amounts to about $7,500 or so per year)?

A. Agency matching is limited to 4 percent of your pay for each pay period. The most you’ll receive in matching contributions is 4 percent of the aggregate pay you receive over the period in which you contribute. So even though you contribute the annual maximum over three months, your agency’s matching will be limited to 4 percent of three months’ worth of pay.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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