Q. When the Thrift Savings Plan calculates my Personal Investment Performance, are the matching funds that the government deposits considered part of the investment, or are they considered part of the investment return? For example, if my PIP for the past year is 10 percent, did I actually earn 10 percent on all of the money in the account, or is it only 10 percent because the government added to my balance? A. From the TSP website: “Personal Investment Performance (PIP) — The rate of return earned by your entire account during the 12-month period ending on the date indicated on…
Browsing: matching funds
Q. I was wondering if the federal government will match my Roth TSP contributions like they do the Traditional Thrift Savings Plan contributions? A. Yes, but the matching will go into your traditional TSP account.
Q. I am a federal law enforcement officer covered by FERS and, by Sept. 30, I will have more than 29 years of service plus more than a year of sick leave. To obtain my annuity beginning Oct. 1, I would like to retire on Sept. 30, but it is in the middle of a pay period. I plan on front-loading my Thrift Savings Plan and TSP catch-up contributions starting in April for the rest of this year to reach the maximum for both. Would there be any TSP match in my last, partial pay period, or should I just…
Q. I’m a 58-year-old FERS employee with 29 years of service. I have two years of leave without pay from while I was mobilized in the Army Reserve (2004-06). I am in the process of paying my military deposit to buy back this time. After returning to federal service, I did not identify that I wanted to catch up on the Thrift Savings Plan and get my TSP matching contributions. I recently read on the TSP website that I could still use the substantial contributions I made to the uniformed services TSP to request my civilian matching contributions. I have…
Q. I am a GS-14 criminal investigator with 16 years covered service, and I am expecting to contribute to the Thrift Savings Plan for another 10 years or so before retiring. I have been contributing the TSP maximum for the past 10 years. What is your guidance with the Roth option? Should I scale back my TSP contribution to the 6 percent minimum to capture the matching contributions and invest the rest with the Roth option? A. Without a good reason to do otherwise, I prefer the tax-deferred contributions.
Q. I was involuntarily separated under FERS discontinued service retirement with 26½ years of service. I was rehired to a federal job and opted to receive both salary and annuity. I no longer contribute to FERS and understand why I no longer get matching contributions to the Thrift Savings Plan, but why can’t I contribute my own money to TSP and get the tax deferral? I have a TSP account but do not plan on withdrawing money until I permanently retire in several years. A. The only way that you’re allowed to contribute to the TSP is through payroll deferral or…
Q. I plan to retire under FERS law enforcement on May 30, contributing my full $17,500 and $5,500 catch-up contribution in my first 10 to 12 paychecks. If I purposely make larger contributions early in the year in an attempt to reach the annual maximum contribution before retiring, will I lose out on agency matching contributions? A. Not if you spread the contributions out evenly over the duration of your remaining employment.
Q. If I have both a traditional and a Roth TSP, can I elect to have all of my contributions (6 percent) go to the Roth account, and still receive the 5 percent matching contributions (FERS employee) that I have been receiving? Is there a required minimum of my contributions that must go to the traditional account? A. The matching formula applies to all of your deferral contributions, Roth or traditional.
Q. I am a young federal employee with three years of service with the Department of Agriculture. I have contributed 10 percent (5 percent matched) into my traditional Thrift Savings Plan. As I understand, I would lose the 5 percent government-matched money if I move all of my contributions to Roth TSP. Would it be best to open an additional Roth TSP to my traditional TSP, or structure it differently? A. You will not lose your matching contributions if you shift your contributions to the Roth TSP.
Q. If I contribute to the new TSP Roth, would I still receive the agency matching contributions? A. Yes, but the agency contributions go into your tax-deferred account.