. The Match
Let’s start with what a match is. When an employer tells you that they have a “1% match” or “3% match” they are saying that if you contribute 1% or 3% (whatever the match is) into your retirement plan (401(k) or TSP), they will also contribute that amount into your account. They are basically giving you free money.
For TSP participants, (drumroll please…) the government offers a whopping 5% match on your contributions. As an example, if you make 100k/year and you choose to save 5k into your TSP the government will contribute another 5k. This means that you are saving at least 10% of your income for your retirement.
So basically, the government is willing to give you thousands of dollars of free money every year for doing something that you should already be doing: saving for retirement. Over the course of a lifetime, this free money can grow to thousands or even millions of dollars (if you invest your TSP well). Don’t miss out on this opportunity. Contribute to your TSP!!…(read more)
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where can you go to view the match contribution?
If the TSP max is 19.5K but my percentage already reaches 18K should I lower my percentage or does the 5 percent not count towards that limit?
Just make sure that your total biweekly yearly amount (biweekly contribution amount multiplued by 26) is not greater than the IRS maximum yearly amount. Your agency match will automatically stop if your contribution passes the IRS yearly maximum allowed amount before the end of the year. Also, the agency match is not a part of the IRS yearly maximum.
When & how does the agency actually apply the matching contributions?