Author Topic: TSP Participants  (Read 11475 times)

simonsez

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Re: TSP Participants
« Reply #100 on: December 13, 2017, 11:27:01 AM »
Pulling back up an old thread to point out there will be 27 PP in 2018, so adjust your TSP contributions accordingly!

Check with your agency, because I think it can vary, but for me, there's only 26 pay periods in the TAX YEAR, which is what matters for TSP.  That's because our official paydays are the second Thursday after the pay period ends, so for example, PP25's official payday is Jan. 4, putting it in the 2018 tax year. Thus, PP24 was the last PP for 2017 TSP contributions.  The same thing happens with PP25 in 2018 - the official pay date is Jan. 2, 2019, so the last PP for 2018 TSP contributions is PP24.  PP25 2017 through PP 24 2018 is 26 pay periods. So $712/pay period for 2018 to hit the  max $18,500 contribution.
It's not really agency-specific, well kinda but it's payroll system specific (what payroll system [NFC, IBC, DFAS, GSA] your agency uses).  NFC and IBC are having 27 pay days in 2018.  Max avg contribution should be $686 ($18500/27).  I did dig in my email and was able to find it and confirm with HR.  I have attached the pdf from NFC and pasted below a little of what my agency's broadcast email says (applies only to agencies that use NFC!).

"Update from NFC
 
Now is the time to think about your financial future. Please take a moment to read the following to assist you in planning your 2018 Thrift Savings Plan (TSP) contributions. 
 
Summary of Information Provided in This Message: 
 
Elective Deferral Limit (I.R.C. Section 402(g)) in 2018 will be $18,500.

Caution to FERS employees to limit contributions to no more than $686 per pay period in 2018 to avoid loss of Agency Matching Contributions.

To ensure that your 2018 TSP elections are withheld from the first payday of the new tax year, please make your elections no later than December 24, 2017.

Reminder to eligible employees to initiate catch-up contributions. If you had catch-up contributions in 2017 and wish to continue contributions into 2018, you must authorize the deductions to continue using the EPP.
"

Bottom line on maxing using the same amount each PP:  If you are GSA or DFAS, use $712.  If NFC or IBC, use $686.

Slow2FIRE

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Re: TSP Participants
« Reply #101 on: December 13, 2017, 03:02:52 PM »
I'm on NFC (so for the last 5 years we've had our Tax year end with pay period 24) - would anyone happen to know if it is okay to put $712 for every pay period and will the "system" automatically adjust to remove the extra contributed dollars?  I always go in and monkey around on myepp to contribute the exact amount but if I can just set $712 this year and it will automatically only contribute $700 on the last pay period that would be very easy to do.

Myepp doesn't allow me to put in anything less than a whole dollar amount for TSP contributions unless I do a percentage of income which is not easy to do with step increases and annual COLA when talking about maxing out TSP.

neverrun

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Re: TSP Participants
« Reply #102 on: December 13, 2017, 04:44:03 PM »
Yes NFC automatically reduces the last payment.

neverrun

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Re: TSP Participants
« Reply #103 on: December 19, 2017, 09:25:23 AM »
FYI,

Just got this update from FERSGUIDE which I subscribe too.

There was a BIG surprise in the TSP's most-recent Fact Sheet publication!  On 12/14/2017, the TSP released a publication (TSP Fact Sheet 10) answering questions about the TSP Modernization Act of 2017. Near the beginning of the document, which you can view here, the TSP states that in addition to the changes required by the Act, "we're also adding the ability to specify how much of your withdrawal should be Roth and how much should be Traditional; withdrawals currently come out pro rata from both sources." 

dude

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Re: TSP Participants
« Reply #104 on: December 19, 2017, 11:55:25 AM »
FYI,

Just got this update from FERSGUIDE which I subscribe too.

There was a BIG surprise in the TSP's most-recent Fact Sheet publication!  On 12/14/2017, the TSP released a publication (TSP Fact Sheet 10) answering questions about the TSP Modernization Act of 2017. Near the beginning of the document, which you can view here, the TSP states that in addition to the changes required by the Act, "we're also adding the ability to specify how much of your withdrawal should be Roth and how much should be Traditional; withdrawals currently come out pro rata from both sources."

Wow, that's big.

wenchsenior

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Re: TSP Participants
« Reply #105 on: December 19, 2017, 11:57:06 AM »
This is all good news.  Will make my eventual Roth ladder strategy much easier, it looks like.

dude

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Re: TSP Participants
« Reply #106 on: December 19, 2017, 12:14:33 PM »
FYI,

Just got this update from FERSGUIDE which I subscribe too.

There was a BIG surprise in the TSP's most-recent Fact Sheet publication!  On 12/14/2017, the TSP released a publication (TSP Fact Sheet 10) answering questions about the TSP Modernization Act of 2017. Near the beginning of the document, which you can view here, the TSP states that in addition to the changes required by the Act, "we're also adding the ability to specify how much of your withdrawal should be Roth and how much should be Traditional; withdrawals currently come out pro rata from both sources."

Yep, here it is:

https://www.tsp.gov/PDF/formspubs/tspfs10.pdf

simonsez

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Re: TSP Participants
« Reply #107 on: December 19, 2017, 12:30:11 PM »
Seems like such a throwaway line for something so impactful, but is great news nonetheless!

PhrugalPhan

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Re: TSP Participants
« Reply #108 on: January 13, 2018, 12:02:49 PM »
My gf has a TSP where she is in the top 0.5% and is hoping to make the top 0.2% by her retirement date in 22 months. 

To the high TSP-ers, do you have any special plans for when you retire? That is... let the co-workers know what you have when you leave?  My gf doesn't like many of her co-workers and will probably let it "slip" how much she has as she walks out the door.
Well she did it,  My GF now has a two comma TSP account as of today.  And it happened even with her taking out a loan this year to pay for her son's college.  Hopefully now she will believe she has enough to retire.

neverrun

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Re: TSP Participants
« Reply #109 on: January 13, 2018, 12:31:42 PM »
A co-worker showed me that he is close to being a member of the TSP two comma club.  He is not sure if he is able to retire yet as well.  His balance made me sad somewhat as he has more than me.  But seeing as he has 9 years more in the system I guess I shouldn't be too upset. 

(Of course he'd be blown away with my brokerage account as he admits to living paycheck to paycheck outside of maxing out TSP)

Aerial

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Re: TSP Participants
« Reply #110 on: January 13, 2018, 04:26:31 PM »
I can hardly believe how much my TSP has gone up in the last year (almost $200,000). $840,000 now, and 100% C,S and I. But it certainly has a bit of an easy come easy go feeling right now. I'm hoping to not touch it for at least 10 years or so, and I'm staying put on my allocation.