Q. I am a federal employee working for DCMA. I plan on retiring in May 2018. The maximum allowable TSP contribution amount for 2018 is $18,500. The maximum allowable TSP contribution for TSP catch-up is $6,000.
Is there a limit as to what I can contribute per pay period during these final months of employment, as long all of my mandatory deductions (FEHB, life insurance, Medicare, FERS, etc.) are covered, and as long as I don’t exceed the TSP limits of $18,500 or $6,000? I’m thinking of living off of my non-TSP savings till I retire in May 2018, so I can maximize my TSP savings as I go into retirement.
Since my take home pay is approximately $1,950 per pay period, I’m thinking of contributing $1,800 dollars per period, which will amount to a total contribution of approximately $16,000 over the nine pay periods I plan on working in 2018.
A. There is not limit to the amount of deferral you may request. The amount actually deferred from your pay will be the smaller of: 1. The size of your paycheck, or 2. The remaining balance of the annual deferral limit.