Tsp contributions reddit. Since then I have been putting 20% into tsp traditional.

• Tsp contributions reddit 2023 TSP Contributions/TSP Spillover Contributions Effective Date Chart. I am a year younger than you and have about 5 times as much in my TSP, salary is about 20% more than yours. The cost of a 1% increased contribution is 1% of gross pay. 08. Both options reduce the person's take home pay by $5,000 (for Traditional, $1,410 of the contribution is offset by reduced tax on the contribution). How did I get this (23,000-2,161. They also check for contribution limits, but so will the TSP or the institution you invest with. My agency automatically adjusts this last contribution so There is no requirement in Secure 2. Related Finance Subreddits. TSP does not have a true up provision, if you max out your TSP early you still stop receiving matching contributions. Meaning that if you’re unmarried and make greater than $40,126 then only the income over that amount is taxed at 22%, not your entire income. Your TSP is adjusted through MyPay (DFAS). Continue to contribute to TSP up to 19500, (this doesn't include match). You could invest just to receive the government matching contribution then pump up your TSP loan. I did go on 4 deployments afterwards, where I skipped the SDP and maxed out my TSP contributions. Set it and forget it. Roth TSP is a component of the TSP package. For example, suppose someone is in the 22% bracket and can afford to put $5,000 of their net pay into the TSP. I currently am contributing 20% to TSP and plan on getting my continuation pay bonus on 09NOV2022 (12yr PEBD anniversary). Any help would be greatly appreciated. 2024 has 26. After Oct 2020, an automatic 5% contribution will go into your TSP so you receive the full 5% BRS match. To start: yes, Posting here because after looking through Reddit, I've seen other people post with this problem throughout the past few years. Elect $885 per PP and the final one will automatically be limited to $875, assuming you don't have eligibility for catchup contributions. If you have a Roth IRA, you can withdraw from the traditional TSP and augment it with the contributions from the Roth IRA. That’s $938 per month. Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - As short-sighted as it seems, I need to find a way to withdraw $1,500 that I contributed to my TSP even if it means paying a fee or penalty. You have 1 TSP. Basically, both plans will have a process for withdrawing excess contributions. How do I contribute to my TSP? You can select your contribution percentages on https://mypay. You don’t have to start an account you can just decide if you want your contributions to go to traditional or Roth. Most employers do NOT provide a Roth option; which is what confuses many people. The contribution limits are the same. It sounds like you’ve gotten your mid month pay early. Comment away, but it must be about you and your experience with the TSP. That said, Roth 401k/TSP to IRA rollovers are not conversion, therefore the Roth conversion ladder process (and rules) do not apply. For tax purposes, including what is reported on your W-2 and TSP contributions, the only thing that matters is the pay date. For example: you take a loan out for 7000 w/ repayment plan of 5 years. At minimum, always contribute to get the max 5% matching from TSP, it's free money. So in this case your contribution from you bonus should be $20,838. So there may be taxes/penalty due. I have over $ 1,512,000 as of January 24 2022. You have the USPS fers thrift, which they automatically deduct 1% from and the tsp and tsp Roth. If you start contributing to Roth TSP I'd recommend just leaving your current traditional contributions sit and grow. Whenever I get close to the TSP Max contribution for the year (22. I am a reservist who started the TSP while on deployment in 2006. Basically this. Hello all, I just checked my TSP contributions for the year and noticed that I may go over the $19,500 max for this year. Apologies, when you previously said "I’m not sure about the answer to your question, but I’m in a position where I need this answer. Question: Does TSP fully cancel last monthly contribution or only cancel the amount over the contribution limit? Most people can't deduct their Traditional IRA contributions, especially if they are maxing out the TSP. 98. The myPay website was recently updated and there are multiple service members reporting their contributions being reset to 0%. S. It does. Catch up contributions only apply if you are 1) over 50 years old, and 2) maximizing your regular contributions. You can contribute to a Roth TSP as a GS13 The limit for 2023 TSP total contributions if you are under age 50 is $22,500. Can anyone help me in this regard? Is there a form to mail or online option? I need to get all my TSP contributions back to my bank account. So let’s say you’re unmarried with an annual taxable income of $50k. New fed employee onboarding, filling out TSP contribution. Ive been maxing out roth tsp for roughly 3 years. AD. The payroll processor won't take out more than the IRS limit, so if you set the amount to the max for next year and it accidentally takes effect in the last pay date of this year, it will still be capped by this year's limit. Which contributions allocations would you go for if Assuming you’re E4 or below, maximizing your TSP contribution is ideal, but will be around 90% of your base pay, at about $1900 per month ($850/pay check), so it may not be feasible unless you have other types of pay coming in (BAH, SDAP, etc. Put in as much as you can manage, as early as you can manage. However, tax brackets are marginal. E-4 here. If I go over, I understand TSP will automatically stop last month (December) monthly contribution from going over yearly limit. If a payroll office submits a contribution that exceeds the elective deferral limit, the TSP will reject the entire contribution and all associated matching contributions, and will send a report to the payroll office showing the additional contributions allowed for the year. 60. Given this, I'm surprised to hear that I'll be taxed again upon withdrawal. Reddit iOS Reddit Android Reddit Premium About Reddit Advertise Blog Careers Press. When DFAS tries to send the full amount to the TSP, the TSP will reject the amount over the limit. Thanks! This should only be necessary when someone has a both a TSP and a civilian plan such as a 401k or 403b that shares the elective deferral limit. Reddit decided to get rid of coins, and I've got many coins to give away. Now let say you are an E-5 over 6 years your base pay is $43,221. Members serving in a combat zone may contribute up to $66,000 of their tax-exempt pay to a traditional TSP plan, while those contributing to the Roth TSP are limited to $22,500 annually. Just started maxing out my contributions this year (in my late 30s). I am still maxing out my TSP contributions. I don't think it maters when pay date is for tsp contributions. I've checked TSP dot gov and don't see any option to change the percentage there. The term Roth really just means it's an after tax contribution, BUT you get the added advantage of tax-free capital gains IF the Roth requirements are met. With the prospect of making 2x-3x in 3-5 years, it likely won't make a difference in your long term financial future. You can max that out in either TSP Traditional, TSP Roth, or a combination of the two. If you start with only 3% or 5% as some have suggested here then you will get used to the amount of money you see deposited in your bank. 2025 contribution limits — The Internal Revenue Code places specific limits on the amount that you can contribute to employer-sponsored plans like the TSP each year. You are not contributing at least 5% If you aren’t putting at least 5% of your income into your TSP, to maximize With a Roth TSP you pay taxes on your entire paycheck before contributions, and you get your earnings tax free when you withdraw. New in 2025: higher catch-up limit for ages 60, 61, 62, and 63. From what I read and assessed (please correct me if I’m wrong), they will only match the TSP contribution up to 5%. mil/. Yes, Traditional TSP (not Roth) contributions lower your taxable income. AFAIK there is no way to see when and at what amount deposits (or "purchased shares" funded by my contributions + agency contributions) actually hit my TSP account, using either the TSP website or iPhone app. You should consider doing both Roth and pre-tax contributions to give yourself some flexibility in retirement. I do 65 C fund 20 S fund 15 I fund and I just turned 63 and still like going to work. I’m worried I’ll end uk running out of cash at the end of the month if I do the 10% with the pay cut. You do not have to contribute to the traditional TSP in order to get your agency's matching contributions. Let's assume I need 500 dollars a month from my reserve paycheck in TSP contributions to maximize BRS matching. There still are senior leaders who never used the TSP or didn’t start it until later in their careers because it wasn’t available or traditional didn’t make sense for them early in their careers (or they got scared in 2008 and never came back). Traditional contributions come out pre-tax, so you pay a smaller tax bill this year. Whatever I couldn't put into roth tsp, I put into roth ira. The system that has TSP batching is called BRS. It just took me 4 years to get there, starting from 15% contribution rate when I was making $80k. The only exception are catch up contributions if you turn 50 or older this year. Your TSP contribution is $7,500. Goal is to max TSP. ) and other voluntary deductions that are processed before TSP contributions, then the resulting pay will be the amount withheld and Just checked my July LES and I have almost $25k in the TSP (no matching). That includes all of your contributions as well I was told that after 1 year of service the army will match me, at most 5 percent, of my contribution into the TSP (be it roth or traditional) after 1 year of service (be it part of full But to help maximize your TSP, you should avoid these eight TSP pitfalls: 1. “Service Automatic (1%) Contributions to TSP accounts start after 60 days. These open an opportunity called “Mega Backdoor Roth” in which you can actually contribute above the $23k. TSP and matching contributions are normally calculated on base pay. After researching the policies about TSP, I realized that after 2 years is when the Army is supposed to match 5% of your contributions. The WORST thing you could do is to transfer the debt to another card or personal loan, run up the original credit cards, and never restart your TSP contributions. When do changes to TSP contributions on Employee Express take effect? If I do change the contributions fully over to Roth is my only option to let the 26k I have in Traditional just sit and accrue interest for the next 35 years? That's not your only option, but probably the easiest/best one right now. I’ve seen it over and over again, it is very hard to watch your take home get smaller by increasing your TSP contributions later on. Dec 22 2022 started first pay period in 2023. My mid-month LES is significantly higher than it should be. Put as much in TSP as you can. Newish fed, and haven’t checked my tsp in a year or so. I ran the numbers one time, and with a 5% contribution to TSP + 5% match + the 5% into the 401k, plus the pension, with the 30ish years at MRA I'd be at a comfortable stage for retirement, so maxing out wasn't as crucial to me. Remember, the match goes into traditional, but is based on your total contribution, i. I am in the Blended Retirement System and I noticed that my contributions (currently set at 5%) are not being matched. Will the earning statement on 12/28/2024 show the TSP contribution as part of 2024 (for a total of 27 payments) or 2025 (for a total of 26 r/tax. However, assuming you don't have any traditional IRA, the process to do a backdoor Roth is pretty straightforward (look up White Coat Investor, Using the TSP and a TSP loan is a perfectly sound way to save for downpayment. Every time I got a raise, I did this and now I’m maxed out on my contributions. Using my numbering that's 2023 PP#26 to 2024 PP#24. It says 5% on EPP but how do I edit it to move it up to 7 or 8 %? Edit - all set with self service from epp! Thanks! Here are the monthly percentages to contribute to the TSP (Roth or Traditional) to receive the full 5% matching every month AND maximize your 2020 contributions of $19,500 elective deferral limit. Whether you contribute to ROTH TSP or Trad TSP, is up to you, some things to consider "The TSP is not allowed to accept a contribution that exceeds the elective deferral limit for the year. If you’re not getting any matching contribution from your 401k or TSP then open a Roth IRA and max that out. Best practice is to try to get as close to the correct amount per paycheck as possible. The very last contribution will be only enough to hit the limit exactly. Same with your Vanguard and IRA contributions. Any combination of traditional and/or Roth TSP has the combined maximum limit of $19,500 (2021) or $20,500 (2022) per In my experience, the December TSP contribution is reduced to put you exactly at $19,500 of contributions and the excess is put back into your paycheck. The TSP document that covers this is Annual Limit on Elective Deferrals (PDF). I use the FERS + CSRS app on iPhone. g. If you add your Roth TSP contributions, it may think you have over contributed when you have not. If more than $19500 does come out of your pay, the TSP should notice and send the extra back to DFAS where it will eventually be refunded to you. If the deduction is on your leave and earnings statement, it will probably show up sometime tomorrow in your TSP account. , federal income tax, state taxes, TSP loan payments, etc. . Then they can either put $5,000 into the Roth TSP or $6,410 into the Traditional TSP. The extra will eventually be credited back to you. I exited the military in April 2022 and am now reevaluating my financial strategy, specifically regarding my Thrift Savings Plan (TSP). 00, despite the fact that I contributed well over 5% during that period. 020 vs 0. I was deployed for 7 months this year and was planning on contributing more than the 19,500 limit, but I looked at my LES and see that the contributions for the year ended up being 19,500 total in my Roth TSP, but nothing in my Traditional TSP. It looks like the contributions from Pay Period 26 of 2020 will count towards 2021 since the official pay date was 1/14/2021. The only way to defer taxes is to cobtribute to your tradicional TSP. Keep in mind it will be taxed first if you put it Roth TSP. This is true for TSP contributions, allotments, on base housing payments, etc. You can make all your contributions to Roth TSP and you will still receive the match. There are quite a few posts about this over the last year. With that out of the way TSP allows for 2 options. Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. There are 26 PPs that will count towards the 2024 TSP limit. This is what you’re looking at. It’s likely that your TSP contributions should be taxed (or not) just like 401(k) contributions, but the TSP isn’t common enough for them to list separately on the form. I want to max my TSP contribution for 2024, for a total of $23,000. Due to poor planning, I had already maxed out my contribution by September 20 (when I reached 2 year time in service), so I understand why I would not have received matching for Oct-Dec, but I am under the If any portion of your contributions are in the Roth TSP you can immediately roll that portion over into a Roth IRA with no taxable events. 0 for the TSP to offer agency matching contributions as a Roth balance. e. TSP contributions are always expressed as a percentage of gross if you use that method instead of the dollar amount. But I’m also 32 and don’t want to fall behind on retirement savings as I feel like I’m already behind. 1 advantage of a Roth IRA, if you retire before age 59. 22. " My agency uses the National Finance Center's Employee Personal Page (EPP). I am dead set on doing this and will not change my mind. Given the percentages, hard to hit 23000 even. The $19,500 is a hard cap of combined Traditional and Roth. You can choose to put contributions into Roth TSP or Traditional TSP. So if it’s $24K next year, divided by 26 that’s $923. TSP contributions must be deducted directly from your federal paycheck. There's lots of schools of thought on the Roth TSP but I'm starting to lean more and more toward it. This year through my civilian employer I've already contributed ~$4500 into a regular 401K. I rolled in a total of about 90k from 3 former civilian employers and today the TSP balance is 297K. The DFAS site says: WARNING: Electing a contribution percentage that does not allow for existing deductions will cancel the Roth TSP elections and funds will not be deposited in your Roth TSP account. I’m coming up on 5 years on active duty in the Army and I have recently become more deliberate with managing my TSP. TSP up to the match, then max Roth IRA ($7k), then max TSP ($23k), then HSA (If available), then taxable brokerage. " BRS makes sense if you're not tl;dr - 25% of your base pay is $818 per month, if you want to contribute more you need to bump your contributions up. As a reminder, these tables assume constant base pay and contribution percentage throughout the year and you do not contribute from special, incentive, or bonus pay. 24 to TSP this year, and expect a $9969 bonus, putting me at $19,539 for contributions ($20,500 contribution match limit). On 31 December 2023, I changed my TSP contribution to 22%, but Army MyPay stated it would be effective on 01 February 2024. The catch For preface, I plan to retire at 51 with 40%, annually max out a Roth IRA, and plan max contributions to a traditional TSP in 2 years. For example, I changed my traditional and roth contribution amounts today on June 10th, Get the Reddit app Scan this QR code to download the app now. That is to say that 1% Traditional or 1% Roth will both contribute (1% x your biweekly gross pay) to the appropriate account. You can contribute 5% to the TSP Roth and your agency will still contribute their matching 5%. If you’re married you can also open a Roth IRA for your spouse and contribute to that even if your spouse doesn’t have an income. I do the catch up for over 50 year olds. Your full November TSP contributions will be made after the December 1 pay. My commander realized while looking over my leave packet and my LES that they were not matching my contributions whatsoever. Regular overtime (45Act) and bonuses are not included for any employee that I am aware of. The TSP computers will also kick back the excess and cut you off from the traditional TSP when you leave the combat zone after exceeding the EDL in the traditional TSP. FL on reddit; beaches and pirates, cigars and chickens, we welcome one and all. The only reason why I’m not going 15% on my Roth is because I am unsure if the Air Force will still match my 5%. So you're correct. I understand that there are 3 contributions in the USPS retirement. For this last paycheck, TSP took less than my usual to make it exactly the maximum of $19,500 for the year, as I In preparation for next year, I created tables for TSP contribution percentages based on the numbers for this year. The reason it's not 25% of your total paycheck is because your paycheck includes BAH + BAS, your TSP TSP follows most of the rules for 401(k), to include taxation, contribution limits, withdrawal rules, rollover rules, etc. I started TSP in March 1987 when it first started. BTW, if you're maxing out your TSP contribution, it's fairly safe to increase the contribution a bit early. A Roth IRA has much more investment options that can potentially yield higher returns than the TSP. If you get 3-5% COLA every January and increase you contribution 1-2%, paycheck still goes up a little and also increased contribution. Most plans (not TSP though) offer what’s called after-tax contribution options (different than Roth) and also something called in-plan conversions. 5. By MY estimate, I will have about $2. Beginning January 1, 2025, participants age 60, 61, 62, and 63 who are eligible for catch-up Post your best TSP info, experience, return, revelation, etc. You can set these through myPay . Single and HoH cannot take a deduction if their modified AGI exceeds $83,000 and they are covered by a retirement plan; Married filing jointly cannot if modified AGI exceeds $136,000; Married filing separately cannot if modified AGI exceeds $10,000. 025) but you get a 5% TSP match. Focus on paying off debt. This allows for you to invest pre-tax (Trad. It was part of a planned upgrade for servicemembers aged 50 and over to automatically make catch-up contributions, but it inadvertently removed the blocking feature which kept servicemembers younger than age 50 from exceeding the Elective Deferral Limit. You can contribute 20,500 total to your tap, doesn’t matter which you contribute to. After the debt is paid, restart TSP contributions at 14% + however much you'd been paying on debt. 025 vs 0. For the TSP, you submit Form TSP-44 by March 15, 2020. I know that’s not something everyone can do, but just figured since I’m still in a fairly low tax bracket, might as well take advantage of it. This means no TSP match but a higher multiplier on your pension (0. Only one change to increase my Roth from 0 to We discovered the over contribution in May and per the TSP website, I am supposed to request a TSP Form 44 for over contributions which will drive the modified W-2 to be produced (according to DFAS and MyPay) and the excess money with interest returned to I currently put 12% into my TSP each pay with agency matching 5%. The TSP has not announced it will adopt the option. TSP is an employer sponsored account, similar to a 401k. Last year, there was an issue where money would continue to be contributed to the TSP even after the limit was hit for annual contributions. Recently pinned on Capt and up until now I’ve always done Roth TSP because of lower taxed income. Special category employees TSP (percentage) and matching is calculated on base plus premium (AUO or LEAP). Every time I got a raise, whether a step increase or a January annual federal pay scale increase, I split the amount half to TSP and half to take home pay. Your ability to earn Service Matching Contributions, up to an additional 4 percent, starts at the beginning of your 25th month of service. Roth and traditional. Does that mean if I have 0% in the TSP but 5 or more % in the Roth, will they still match? That is why I made the TSP contribution calculator. 5k for TSP/401K or the $6k for IRA. Expand user menu Open settings menu. I think it's a good idea to fund a Roth IRA before adding more to the TSP though (above the 5% to get the match). From my base pay, I need to have 22% deducted in January and 21% for the remaining months. Your TSP loan does not count toward the max contribution limit of $20500. 5, the TSP currently give you a mix of contributions and growth from the Roth TSP. Open Roth IRA, contribute up to max 6k. Tips to maximize your TSP: Set your regular contribution to 18000/(number of pay periods) = $693 assuming 26 pay periods. An IRA is an "individual retirement arrangement" and has no connection to TSP (other than lower income limit for deducting traditional IRA contributions due to having access to an employer plan). Just say no to the G Fund and Life Cycle funds. My wife is a GS 11 and we want to change her TSP contribution percentage to just get the maximum amount of free matching, Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. TSP will match up to 5%, but you need to put in 5% to get that. If I was feeling punchy I'd go 60/40 or 75/25 in favor of TSP. I went to Mypay civilian, logged into my account, and cannot see there where I can change the % contribution. DFAS accidentally broke their TSP contribution software. 2024 PP's #25 and #26 have pay dates in January 2025. As an official Fidelity customer care channel, our community is the best way to get help on Reddit with your questions about investing with Fidelity TSP Basic is the 1% and TSP Matching is the 4%, combined equals 5%. If you expect your pay to change due to advancement, time in My allocations into my Roth TSP are as follows: 92% Basic Pay 100% Special, Bonus, Incentive Pay My last 2 drill weekend paychecks there have been no contribution to my Roth TSP. Roth IRA contributions you already paid your taxes on, so they're just checking that you don't go over the $20. They My issue that since I cannot maximum my annual contribution to the TSP, should I rollover the available funds to my Employer’s 401K or my separate IRA? Drill pay contributions are quite paltry. TSP contributions on just Basic Pay or Basic Pay + BAH + BAS I'm just trying to figure out tax bracket stuff for this year and see how to best max out my ROTH and Traditional without going over into the next tax bracket. I noticed my L fund had something like 20% in bonds which was too conservative for my current strategy. From what I understand I need to contribute ~$16k into my Roth TSP to hit that $20,500 limit. Posted by u/Fapplejacks8788 - 1 vote and 1 comment But if someone had a lot saved up and could afford to send 100% to their ROTH TSP for a month, it might make a good experiment. Then another 4% if you contribute at least 5%. 0769230769231, so I would set my contributions to $924. Currently, if you are 50 or older you can add up to an additional $7,500 catch up contribution to the $23,000 TSP limit for a total of $30,500. $23000 annual contribution limit minus $6000 equals $17000. TSP) and pay taxes later in life when you withdrawal. It's been a whole year since my 2 year mark. And, you would have to have ten years in before your equity in TSP is worth anything to pursue something else. You'll get a 1099-R and any earnings or Traditional contributions will be included as income on your tax return for 2019. Get app Get the Reddit app Log In Log in to Reddit. Since then I have been putting 20% into tsp traditional. Moved existing contributions and allocated future ones Military PSA: Hey gang, check your TSP contributions on mypay if you’re actively contributing. You can set your contribution I think I should state that I’m also counting the TSP matching portion into my total. Your TSP match is $3,750. I would focus more on maxing out your tsp contributions than paying for a mortgage with that low of a rate, Reddit's home for tax geeks and taxpayers! News, discussion, policy, and law relating to any tax - U. Military pay is monthly. Is there a way to see total contribution since I started working Shop Collectible Avatars; Get the Reddit app Scan this QR code to download the app now. The exception being Special category employees. As others have said, your rate of return estimate seems way high. Please forgive the stupid question, but I cannot figure out how to increase or otherwise change my contributions to my TSP. So you could save $5k/year in a bank or you could put it in your conventional TSP, save 20% or so in taxes and then borrow it for the down payment. However, you could use a When you reach age 50, you can contribute an additional amount over the TSP limit. 5 when I can begin withdrawal from the Roth IRA. How much should I contribute to my TSP? As much as you can. You can contribute to a non-TSP IRA if you wish, but that limit is $6k a year, $7k if you are over 50. Also, decided to go with Roth TSP, instead of traditional TSP. Your mid month pay is an advance of half your expected monthly pay. When DFAS tried to make catch up contributions easier for those over 50, they accidentally permitted it for everybody. Log In / Sign Up; Advertise on Reddit; Shop Collectible Avatars; TSP Contribution Charts. I checked MyPay today, and the change is now effective. ), then you factor in the 2 weeks of AT, which I think is just 14 days of regular pay, plus I will be promoting in September so I'd have to factor that math in for the same percentage giving a higher contribution. That’s our plan for when my wife promotes to get her to maxing out her TSP. 5% percent of that will be $2,161. When you can max TSP, and Roth, put the rest in taxable brokerage account. Be aware of the income limitations on ROTH IRA contributions. Personally, I plan with a 6% rate of return. You never really "feel" the contribution increase, and it works you toward your goal. r/govfire 23,362 members. See Part II. I have adjusted my tsp and Roth but, was wondering if I can increase the 1% for the USPS fers portion. with the TSP, it's harder to calculate what a 5% contribution is going to get because the drills happen irregularly (sometimes its every month, sometimes its a 4 day DWE etc. 7 million At that income, you would not be able to deduct traditional IRA contributions on your taxes either. It was established by Congress in the Federal Employees’ Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees If so, stop/reduce that contribution before stopping the TSP. Is anyone aware if this is still the issue this year? DFAS still has not fixed this issue after a year? It hasn’t gotten to the TSP yet because you haven’t gotten all your January pay yet. To maximize your catch up contributions calculate 6000/(number of pay periods) = $231 assuming 26 pay periods. Since April of 2021, I have not been receiving the Agency-Match on my TSP contributions, only the 1% Auto-Match. 0 page. TSP: $1625 IRA: $500 Taxable account: $500 My two cents: cut your TSP contributions to 5% so you keep getting the match, but throw that extra cash into your savings account. Therefore, it is not currently listed on the TSP Secure 2. If you joined in 2016, you are on the legacy/high 3 retirement plan. Total: $11,250. I read that many of you are making all of your TSP contributions as pre-tax. The TSP has only been available to military members since 2001 and the Roth TSP since 2012. Pretty much the title. As the website states: "To update your contribution rate/amount, in most cases, you can use your agency's or service's electronic system to start, change or stop your TSP Traditional (pre-tax) and/or Roth contributions. Aquí nos gustaría mostrarte una descripción, pero el sitio web que estás mirando no lo permite. Where ever you go to check your pay statement should also have the link to start/stop/change TSP contributions. But I know I'll eventually take a big hit because of a TSP loan, and that some people say TSP loans are never the way to go. Just remember match goes to traditional, not roth. 5k this year), I’m frantically trying to adjust my contribution percentages so that there’s as little overage as possible but I’m always going over the max due to 1) the delay after resetting the contribution percentage and 2) inconsistent pay dates (I’m in the guard so my language bonus gets paid The first answer you received below is the only advice you need: As much as you can. Right now all 12% is in traditional and nothing going into roth. If you joined after 2017, a TSP account will be automatically created for you. The government automatically invests a new employee's TSP contributions into your age corresponding L fund, but you would still have to have selected Roth, regular, or combination when you signed up to designate a contribution percentage or dollar amount. Hello, Have been googling trying to find out where to log in to increase my TSP contribution for a DOD GS and TSP site (I can log in fine there) says MyPAY and is nothing on there under my civilian account. r/tax. TSP doesn’t have these sadly TSP doesn't do anything, it's up to your agency payroll to stop contributions. This gives you a nice end of year "holiday bonus. There's also Roth TSP, but that's included in the $23k max contribution. It even has a link to the page on the TSP website that has the contribution limits so you can update them yourself in the future if you need to. My plan is max out my ROTH TSP contribution. At the same time you can contribute as much of your mil pay as you can to Roth TSP. It also allows for post-tax investment (Roth TSP) so you can pay taxes now and withdraw penalty and tax free later in life. Just invest in the C or S fund or a combo of both to maximize your earning potential. My Jan 21 LES shows that "Agency contribution match" and "TSP YTD Agency Match" are 0. Say your target is $20K in four years for a down payment. contribute 5% to get match, its free money. I will have contributed $9570. I can put more in because I’m over 50 years old. I've already contributed $6000 to my IRA this year that I have with my bank. The IRS is experiencing 2023 does not have 27 contributions for NFC or GSA payroll at a minimum. Technically speaking, you haven’t contributed to your TSP for the month. You could also put it in C&S and see some real gains. That would allow you to go up to the annual additions limit of $66,000. dfas. 5 or you’ve rolled over your Roth TSP balance If I set my contributions so that the annual total would be $18000, for example, or $1500 per month, would DFAS/TSP modify my December payment to $500, stop the last Some private sector 401k plans allow people to make after-tax (not Roth) contributions up to that 56k limit but currently TSP does not allow that. Thus, as you stated $23,000 / 26 = $884. I want to put in 10% but I’m taking a pay cut may just do 6% minimum. You'll need to start the Roth TSP contribution and, if desired, stop or reduce the traditional contribution. I put over $24,000 every year in my TSP. It helps a bit at a time. Military pay is set up on a monthly basis so deductions from your pay don’t get sent out until you actually get paid on the 1st of the following (or thereabouts). Other searches say GRB is used now but is no CAC login and wants a GRB platform license number to create account. Merry Christmas to all who celebrate! I'm trying to change my % contribution to increase it and cannot for the life of me figure out how to do it online. Now, you can do a 0% loan with TSP for 50% of your equity, but your wages are garnished for X # of years until repaid. Let’s assume you have $5,000 in the TSP and will retire in 45 years. This year the limit is $20,500. I am currently only payed Basic Pay. 023. Generally people will increase any time they get a raise. It accounts for previous contributions, changing pay throughout the year, and changing contributions mid year. I've contributed to both in the past. 020). It has the lower pension multiplier (0. “VOO” is Vanguard’s S&P 500 Index exchange traded fund (ETF) which is an exact replica of the C Fund. I estimate you should be If you max too early (your contributions only, match doesn't count), you will miss out on the match for any paychecks that don't have a TSP contribution; there is no true-up. Please read this info on TSP contributions and matching. Penalty free. Terms & Policies Keep in mind that TSP contributions only come from base pay, so you need to increase that number to cover your total compensation. and International, Federal, State, or local. 62. If you pick Roth, that's it. TSP contributions are made in whole-percent allotments in MyPay, which put me at ~$19600 in contributions for the year. There are tax implications for these, read this if you don’t know the difference. At this point, I sort of prefer option #1 -- mainly because it is a plan, at all. 5K is max for 2022 contribution into TSP. So to answer your question 60% is absolutely possible, even with 1k of spending a month (I The TSP computers will kick back the excess and totally cut you off from all TSP contributions if you contribute more than the elective deferral limit in the Roth TSP (anytime, any place). So, unless you're a government civilian of some sort (on a federal pay scale), your Army Reserve paycheck is the only way. I love never seeing the money. If you’re contributing to the TSP and not receiving any agency contributions/match, it’s likely you The way I maxed out my TSP contributions took time but was painless. Traditional TSP and Roth TSP. Either need to go over/under. ", I had assumed the answer you needed was what OP was asking, which my other comment does answer. The 2023 IRS annual limit for regular TSP contributions is $22,500. No matter how you spit it, your the government matching will go into traditional and does not count against your limit. You'll still get the auto 1%, but that's it, so best not to max before the last paycheck. Setting up by dollar amount is the most simple way to max out the contribution without risking maxing out too early, which would leave to a loss of the match (would still get the auto 1%). I’ve heard from various opinions that I should go more for max risk for investing into the C and S funds for more profit. I would keep the money in the TSP. It does not make Roth distributions qualified, so Roth TSP should be rolled into a Roth IRA (if you want access to contributions) or left untouched until 59 1/2 (and have met the five year rule for Roth TSP). It goes straight into the TSP, and my balance has really grown while maxing the contributions. I am 24 years old as an active duty E-3 and I’m going to be investing 20% of my base pay into my Roth TSP. Reply reply TexAgVet TSP and IRAs do not share a contribution limit, so you could max both types of retirement accounts, if you wanted. Therefore, maximizing your TSP contributions If so, you can make after-tax contributions to the traditional part of the TSP. Hello friend, it's not on the TSP website. Since OCT 2022, almost all changes to my my TSP contributions made in MyPay have not been processed. See how the contribution limits have changed. I've back loaded my contributions this year so I'm up to like 30% to try and get to the max by 12/31. Then I will contribute ~$6000 a year towards my TSP quota from my military paycheck. The very last contribution will be $900. I was under the impression that my $38. The 1% agency contributions should be automatic if you selected the Blended Retirement System (BRS). They will be easy to update once the contribution limits and pay tables From a practical standpoint, you must contribute to TSP from your paycheck while you can send money to a Roth IRA at any time. On the bottom of my LES under Remarks it says, "ROTH CONTRIBUTIONS NOT COLLECTED DUE TO AMT EXCEEDING NET PAY". TSP Contributions by a Percentage of Your Pay If you elect to contribute a percentage of pay to the TSP and the amount is more than your remaining salary after mandatory deductions (e. If you can afford it, 20-25%. When you do land that job, make sure to contribute the maximum amount to your 401k (currently $20,500, $22,500 for 2023), and to an IRA ($6,000, $6,500 for 2023) These are the monthly percentages to contribute to the TSP (Roth or Traditional) to receive the full 5% matching every month AND maximize your 2024 contributions of $23,000 elective deferral limit. ). When do my TSP savings actually get deposited into my account? I too am at an agency serviced by NFC and my TSP contributions are posted on Wednesday of the pay week. You can change the paycheck deduction percentage (I believe the limit is 92%). ” Looks like you won’t get any matching contributions until you hit But that interest you pay goes back into your TSP. Only catch is that the match has to go into traditional TSP, even if your contributions only go into the TSP Roth. As always, make sure you’re tracking annual contributions on your LES and not on your TSP statement or website. I figure the traditional TSP will carry me over to 59. Does it make sense now that I’m earning $77,637 of taxable income to switch to traditional? I’ve also heard that my traditional contributions can be deducted from my gross income to decrease my PSLF loan payment that will start here soon? In general, TSP is considered exactly the same as 401k as far as IRS rules go. Everyone has personal issues that can make it I'm not going to miss out on TSP max contributions in favor of paying off a loan because come January those missed potential contributions are gone forever. The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. Exactly this. If you have only one TSP account or both a civilian TSP account and uniformed services TSP account, the TSP should automatically refund any over contribution. I understand the difference between traditional and roth, roth taxes are taken out now and traditional taxes are taken out later. 8k in the TSP, being contributed to a Roth TSP, was already taxed at the time of contribution. Newly hired federal employees are automatically enrolled in the appropriate L Fund for their projected retirement age. 08). I want to up my contribution but can’t remember where to go to up that. All FERS MRAs make one eligible to access TSP at retirement, avoiding the early withdrawal penalty. Or check it out in the subreddit that is intended to provide info and advice to Federal Civilian and military employees who contribute to the TSP as part of their In all of these (TSP / 401k / IRA), the tax status of the account can vary and will dictate whether you are allowed pre-tax (traditional), after or post-tax contributions, or Roth contributions. The Roth IRA is the most flexible of the common retirement accounts (Trad TSP, Roth TSP, Trad IRA, and Roth IRA), which means it can fill in the gaps of your retirement funding, especially if you decide to stop working before age 59. Anything you can find for a rule on 401k is carried over to TSP. I usually invest the Roth IRA limit ($6500 for 2023 if you are under 50) every January then spread the Roth tsp contributions over the year to max that out. The total you end up paying with interest included = $7860 That whole 7860 goes back into your TSP. This means you get less money from your Roth TSP contributions can only be withdrawn tax-free and penalty-free after you’ve left government service and either you’re age 59. If 3 and 4 aren't an option, stop TSP contributions. If you go up to a 12, take all that money and put it away. I go into my civilian contributions and set them to $653 dollars per pay period. Quick math with TSP deduction only being what's left of the $23k annual limit puts it pretty close (again, hard to say due to other pay, but it's loo low for all of the extra pay I'm supposed to get including backpay, and too high for none of it!), so I'm 99% sure they put it in Roth and then turned off all other contributions. ikkqk jmipf tfnzqd aqn fpyh xjta wxn sfiixk ikkio hlru