How To Make The Most of Your TSP in 2018 + A Retirement Success Habit

by Retirement Advisor | Jan 6, 2023 | Thrift Savings Plan | 1 comment

Many people are concerned about TSP. If you don’t have enough saved in TSP, your retirement could be very uncomfortable. The problem is that there’s mountains of information out there about TSP. It’s complex and you’re left on your own to sift through it all to come up with action steps.

***Here’s where you can get the extra lesson, The TSP Check Up, Now is a great time to do The TSP Check Up—it’s a free lesson that’s directly from the FERS Retirement training that I’ve been teaching for years at agencies!

This video is brought to you by the FERS Blueprint Online Retirement Training. We believe that it shouldn’t be so hard to get into retirement training, and that you should be able to learn when you want to and at your own pace. Now you can at the FERS Blueprint. Take a class today!
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“I’ve got too much saved up in TSP”—said no one ever

The way the Thrift Savings Plan (TSP) works is you save money each pay period—and that’s done by payroll deduction. It’s referred to as a contribution. The amount you contribute is determined by you. You can use either a percentage of your pay or a specific dollar amount. Every year the IRS sets a limit on the maximum contribution you can make into TSP.

There’s two types of contributions: Regular Contributions and Catch Up Contributions.

REGULAR CONTRIBUTIONS are available to all eligible employees (regardless of their age). In 2018, the maximum annual Regular Contribution is $18,500. That means you can make contributions into Traditional TSP and/or Roth TSP in any combination you wish, but the total cannot exceed $18,500.

CATCH UP CONTRIBUTIONS are an extra amount above and beyond the Regular Contributions, if you meet the requirements. You can start making Catch Up Contributions at any time beginning in the year you turn 50. You must also be on track to reach the maximum Regular Contribution for the year. In 2018, the maximum Catch Up Contribution is $6,000. That means if you’re eligible, you can make contributions into Traditional TSP and/or Roth TSP in any combination you wish, but it cannot exceed $6,000.

Your Regular Contribution automatically carries over year to year until you change it. However, you must re-elect Catch Up Contributions each year.

Remember that the TSP regular contribution limit doesn’t include any FERS Match. The FERS Match is a separate amount over and above the contribution limit.
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PROJECT Prepare2Retire and FERS Blueprint are not affiliated with, endorsed or sponsored by the Federal Government or any US Government agency. PROJECT Prepare2Retire and FERS Blueprint are educational only. No specific financial, retirement nor tax advice is being offered. The material presented is as current as possible, but is necessarily generalized. Facts and opinions are based on research and experience, but are not endorsed by the Federal Government. It is recommended to consult with your personnel office and/or the Office of Personnel Management (OPM) Retirement Office, Thrift Savings Plan, Social Security, Medicare, Internal Revenue Service, your legal, tax and/or other advisor(s).