Browsing: TSP contribution

Q. I would like to retire on May 31, 2018, and I would like to max out my TSP contribution for the year. My last working pay period (PP) would start on May 27, 2018. My last full working pay period would be from May 13 – 25 and the pay day for that PP wouldn’t be until June 1, 2018, the day after I will have retired. Will a TPS contribution be taken from my paycheck and put into my TSP account for the May 13 – 25 pay period on June 1, 2018 – and again for the…

Q. Is the TSP technically a 401(k)?  I know all the same rules apply and, for example, when the contribution max or catch-up max goes up for 401(k)s, the TSP max also goes up, but I’ve never actually seen it referred to as a 401(k). If Congress changes the rules for 401(k)s as they are apparently considering, would the TSP rules also change, or would Congress have to address those separately?

Q. I am 56 years old, and a widow. I’m working my fourth year as a U.S. Postal Service regular carrier. I worked five years as a rural carrier associate before that, one full year as a sub on my primary sub route, where the regular was not there. As I understand it, I have to work five years in order to be vested in my TSP contributions. True?

Q. I’ll be eligible to retire in September 2021 when i reach age 56 years and 2 months, and have 34 years of service. I’ve been investing money in my TSP since I started working for the federal government, and I switched all of my TSP funds into the L2020 as suggested when the life cycle funds began. I never really thought about it until this year, so I probably won’t retire when i’m eligible since I’ll only be 56. At least that’s what I’m thinking now because I’ll have two kids in college. I know that in 2020, they’re…

Q. I joined federal service in July 1985, at which time I was placed under FERS. Between July 1985 and January 1987, the official start-up date of FERS, I was not able to contribute to the TSP.  Since January 1987 I have contributed the maximum 10 percent to TSP.  As I get closer to retirement I’m curious if the government recognizes the lost opportunity of not being able to make TSP contributions between July 1985 and January 1987. Is there any way to make-up for lost TSP contributions and lost government matching?

Q. I have $600,000 in my TSP allocated as 41 percent in the C Fund, 6 percent in the S Fund, 22 percent in the I Fund, 23 percent in the G Fund and 7 percent in the F Fund. Is this an appropriate allocation for a 54-year-old retiring in two years? I need approximately $2,000-$3,000 a month for 25-30 years. If not, what allocation do you suggest?

Q. I have a question about repayment of a TSP loan. I want to either up my TSP contribution to 10 percent ($384 a pay) or up my loan payment by $384. What is the better financial decision? Either way, the same amount of money is going into my account, so other than the tax effects is there a preferred option? What about using the $384 to pay off consumer debt? I could pay off a credit card in about six months if I added the biweekly amount I would put into my TSP to my credit card, but obviously…

Q. I am 38 years old with 15 years of government service as a GS-14. I hope to work no more than 20-22 more years, assuming age 60 will give me the maximum benefit. My TSP allocations are where my concerns lie. I am blindly diversifying my account as follows: G Fund at 10 percent; F Fund at 0 percent; C Fund at 50 percent; S Fund at 30 percent; I Fund at 10 percent. I have no allocations in the L Fund. I am contemplating having future earnings go into the L2040 fund. Would you recommend this, and how much…

Q. I am a FERS employee with 28 years in government service and about five years away from retirement. I evaluate my TSP portfolio allocation based on risk comfort, life expectancy, etc. in isolation from what I expect to receive from Social Security and my FERS pension. My allocation is roughly 60 percent stocks, 40 percent bonds (mostly G Fund). Recently, I have been told that because I will have a guaranteed income stream from my FERS pension, I can afford to take more risk in my TSP and I should move money from the G Fund to the stock side of the portfolio.…

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?

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