TSP maximum contributions


Q: I intend to retire in July 2010. I would like to make maximum allowable contributions to my Thrift Savings Plan during that year. Is it legal/permissable to make the maximum yearly contribution allowed by IRS rules between January and July? Or must it be over a 12 month period?

A: The annual limits are not pro-rated. You may contribute the entire annual limit during a partial year of employment.

— Mike Miles


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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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