2017 is upon us, and I want to show you how to MAXIMIZE your contributions to the Thrift Savings Plan.
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Cooper Mitchell helps federal employees better understand their benefits and helps them retire on their terms. Using financial planning and investment management, Cooper is able to tackle the issues that are unique to federal employees.
Cooper is also a public speaker who is available for various federal conferences and events.
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Very informative, as always Cooper. I have a question that many younger folks like myself may also have. What would happen if I accidentally contributed over the eighteen thousand dollar limit for the year? Will the IRS penalize me in some form? Thanks in advance.
Consider this for a moment, if you know exactly what your 5% contridbution is, mulitply this by the number of paychecks for the year, and subtract this value from the year maximum contribution limit then you will have the number you would want to put in at the beginning of the year. I.E. Joe makes $100000/yr, 5% contribution is $5000 a year, Joe puts 5% of his first paycheck plus the $13.5K (2018) difference as quickly as possible while continuing his 5% for the remainder of the year. In doing so Joe maximizes the benefit of time in market at the larger dollar amount while still gaining the agency's 5% matching…
Can you make a video on how the match automatically goes to the Traditional IRA even though my contribution is set for Roth?
Do you get a 5% match in the military?
Hi Cooper. I'm not sure that I'm getting the max amount per pay period because I'm seeing different matching figures even though I'm contributing a fixed amount of $711. This pay period I was matched at $148, last pay period was $123. What am I missing here? Since I'm doing a fixed contribution shouldn't the matching be fixed as well?
I’m 44 years old, at this rate, how much should I contribute to have a decent retirement when I turn 62?
Great video; you are a great speaker on camera!
I have a question for you. I am an Army cadet at my college and also a member of the Utah Army National Guard. I started a Roth IRA with my hometown financial planner in San Diego in March 2017 and max my contribution at $458.33 a month. He told me I should, at the least, contribute the 5% to the TSP (which I now do from my drill weekend paycheck) to get the match, but if I have additional money I'd like to invest would it be better utilized going toward something else like a mutual fund or stocks instead of the TSP? Thank you.
Additionally, after the first month you need to actively allocate your contributions into specific funds; otherwise, the default is the G-Fund.
Is the percentage i contribute tax deductible? such as, I would be seen as making 15% less according to the IRS because i allotted 15% to the TSP. would it put me in a lower tax bracket for a better tax return?
What if one were to retire in March and wanted to max out the TSP for that year? One would have to front load it no? Also, why wouldn't they receive the 5% match when doing so?
Thank you for this information. It is beyond helpful.
Cooper, I have watched a few of your videos after learning about you today, my question is Does Active Duty military get the 5% match. I ask because I contribute 15% to Roth but I don't see the 5%. And thank for you channel I greatly appreciate your info.
Speaking of the 5% match, I've heard some talk of the Uniformed Services perhaps beginning to match in the near future? Any truth to this? I'm active duty USMC and a match would be fantastic.
What if I can't afford the 692.31 per pay period? I'm a GS9 2210 series?
Your videos are greatly appreciated Cooper. If the agency's 5% match is automatically contributed to the traditional side, is there any way to transfer those funds to my Roth TSP fund? Also, if I contribute $1500 a month (for $18000 total) will the 5% agency matching put me over the contribution limit for the year? The Marine Corps is coming out with a new Blended Retirement System that will provide for the 5% match that other federal employees are already receiving and I am considering whether or not to opt in to the new program. I know a video on the BRS would be very helpful to a lot of people who find themselves at the same crossroads. Thanks again brother.
awesome video and TSP info…i do have a question though. if i contribute the max to my 2017 TSP ($18,000), can i also contribute the max $5,000 (i think) to another IRA Retirement account (say Vanguard or Fidelity)? thanks and i appreciate any info and response you can provide.
Cooper thanks for the info. Quick question, maybe you mentioned but I missed it. 18K is the limit you can put in your TSP, now does that limit include the 5% match that you get as well? i.e. if I do the 692.30 as you mentioned, and I get a 5% match, Ill be over 18K at EOY. Just trying to get clarity. Thanks.
hey cooper, how do i transfer my traditional tsp funds into my roth tsp?
Hi Cooper great video,
I am active duty and with the new blended retirement i have a quick question. for example if a person makes 50K base pay and contributes 18k via the 692/pay period. Will that persons account be 22,500 by the end of the year (without gains) since 18,000 contributed plus 5% match? Thanks!
thx cooper
"Those who turn 50 can do the catchup": So many make this statement. It is actually THE YEAR that you turn 50, not WHEN you turn 50. I lost 6 months of catchup contributions as a result. Please make this clear to your viewers. Thx.
cooper I am getting ready to retire.. what funds should I be in ? trying to earn 5 to 7 %? thx even if you don,t hav an answer. I do like your videos
So, to reach max contribution, does that $692/pay period include the agency matching 5%, or no? Basically, Is the agency match added into the 18,000 limit? Thanks
+Al Rocky TSP will not accept contributions that exceed your limit, even if your payroll office puts it through (although the payroll office SHOULD adjust downward to the limit). I know this not only from personal experience but from TSP policy on their website: "The TSP is not allowed to accept a contribution that exceeds the elective deferral limit for the year. If a payroll office submits a contribution that exceeds the elective deferral limit, the TSP will reject the entire employee contribution and all associated matching contributions, and will send a report to the payroll office showing the additional contributions allowed for the year. Once a participant reaches the elective deferral limit his or her contributions will be stopped for the rest of the year."
What am I unsure about is the rejection of the ENTIRE contribution. It has been my experience that they accept UP TO the limit and reject the rest. You are correct, it SHOULD be the payroll office but even if they slip up and try to put it through, TSP will reject it.
Thanks for pointing out the $18,000 limit- its surprising how few people know the limit (especially for the Roth, many people think it is lower than 18K)
Thanks Cooper!
where have you been cooper? haven't seen you in a while. As usual, great info!!!