“Make up” contribution qualifications


Q. I’ve settled a case against the government and would like to apply some of the proceeds into my TSP account. I’m over 50. Other than making a “make up” contribution, can I use 415c to make an additional annual contribution that is the difference between $54,000 less my elective deferral, matching contributions, etc?

A. No. Your contributions to the TSP are limited to payroll deferral. You may be able to make a deductible contribution to an IRA for the year, and then transfer the IRA balance into your TSP account, however. Check with your tax accountant to see if you are eligible.


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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

Leave A Reply