Choose from the subcategories below to review the Frequently Asked Questions. Click on a question to expose the answer below.
To return to the main FAQ page, just CLICK HERE.
Choose from the subcategories below to review the Frequently Asked Questions. Click on a question to expose the answer below.
To return to the main FAQ page, just CLICK HERE.
For 2018, you are permitted to contribute $18,500 per year in regular contributions.
For 2019, the IRS raised the limit to $19,000 per year in regular contributions.
No. If you over contribute to TSP (for regular contributions), the TSP will reject further contributions.
If you wish to contribute "catch-up contributions" you must specifically make an election to do so.
Yes, your contribution amount (either a specific dollar amount, or a percentage of your salary) automatically carriers over from one year to the next. Of course, you are permitted to make changes to your election amount at any time.
No. Once you are retired or separated from the federal government, you are no longer permitted to make new contributions to the TSP.
Yes. In the year you turn age 50, you are permitted to contribute an additional $6,000 per year to the TSP. This is in addition to the regular contribution limit ($18,500 for 2018).
For 2018, you are permitted to contribute $6,000 per year in catch-up contributions beginning in the year you turn age 50.
For 2019, the IRS has kept the $6,000 limit the same.
No. Catch-up contributions must be re-elected each year. They do not automatically continue to the next year like regular contributions.
You can make an interfund transfer at any time, but there are some important limitations:
If you have both a civilian and a uniformed services account, these rules apply to each account separately.
Your interfund transfer counts in the calendar month TSP processes it, not in the month you submit it.
Yes. To change how your existing money is invested in the TSP, you may do an interfund transfer. Note that this does NOT automatically change how your NEW contributions will be invested.
In order to receive the full match from your agency, you must contribute at least 5% of your salary to the TSP. The agency contributes an automatic 1% of your salary, but to get the other 4% from your agency, you must contribute a total of 5%. Be sure to spread out your contributions over all 26 pay periods throughout the year.
Yes. If there are any pay periods throughout the year in which you are not contributing to the TSP, you will not receive matching funds for that pay period. You must spread out your contributions over all 26 pay periods throughout the year to get the full match.
The agency's automatic and matching contributions will always be deposited into the Traditional side of your TSP account. To be clear, this happens regardless if you decide to contribute YOUR money to the Traditional or Roth side of your account. You will NOT lose any of your agency's match if you choose to only contribute to the Roth TSP.
Traditional TSP
You contribute with pre-tax money (meaning you get a tax deduction this year), but when you take the money out later, it will all be taxed as ordinary income. This is true for both your principal, the agency's contributions and the growth.
Roth TSP
You contribute with after-tax money (meaning you do NOT get a tax deduction this year), but when you take the money out later, it will all be tax-free as long as you are at least age 59 1/2 and at least 5 years has passed since establishing the Roth TSP account.
Yes. You can choose any combination of Traditional and Roth contribution you wish.
No. The TSP does not permit you to make Traditional TSP money Roth TSP money. In the private sector this is known as a "Roth Conversion," but the TSP does not allow this.
No. You are not required to repay your TSP loan in full before you retire. However, any outstanding balance you have at that time will be declared "taxable" and if you are under the age of 59 1/2, you will also suffer a 10% early withdrawal penalty from the IRS.
No. You may take an age-based (age 59 1/2), in-service withdrawal even if you have an outstanding TSP loan.
You can name anyone you wish to receive your TSP upon your death. You are even permitted to name legal entities (church, charity, trust, etc.).
You will use the TSP-3 Designation of Beneficiary form to name or update your beneficiary designation.
You can log in to your TSP account and see your beneficiaries.
You can update your beneficiaries at any time.
No. There are no longer open seasons for TSP. You can make changes to your account throughout the year instead of waiting for an open season.
The changes have not been implemented by the TSP just yet. You can read more about what's coming HERE.