TSP contributions and catch-up


Q. In 2016, I contributed $17,900 to my TSP and an additional $6,000 to my catch-up TSP. I had intended to contribute $18,000 to my primary TSP and $6,000 to my catch-up to max out my TSP, but I miscalculated. Will TSP/Employee Benefit Information System automatically transfer $100 from my catch-up contributions to meet the $18,000 requirement before catch-up contributions are made? Or do I have a tax problem to face?

A. I’m not sure exactly how they’ll handle it, but they will return anything that would be considered an overcontribution to you, so there should be no tax problem in any case. I suggest that you contract the ThriftLine to ask how they have handled it. You can also check your W-2 for 2016 to see what they are reporting.


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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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