Contribution rules for last paycheck prior to retiring


Q. I would like to retire on May 31, 2018, and I would like to max out my TSP contribution for the year. My last working pay period (PP) would start on May 27, 2018. My last full working pay period would be from May 13 – 25 and the pay day for that PP wouldn’t be until June 1, 2018, the day after I will have retired. Will a TPS contribution be taken from my paycheck and put into my TSP account for the May 13 – 25 pay period on June 1, 2018 – and again for the May 27 – 29 pay period and be deposited on June 14, 2018 – even though I will be officially retired on those two pay days?

A. This is a question for your payroll office, but there is no restriction against payroll deferrals that are not processed until after you have separated.


About Author

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 and view his blog at

Leave A Reply