By Mike Miles
November 23rd, 2011 | Uncategorized
Q. I’ll be receiving a check this week or next from an inheritance. I’m not maxed out on my TSP and haven’t sent any catch-up money in this year either. I was wondering if I could send 100 percent of my pay for the last couple of pay periods this year to TSP to get as much in there before the end of the year as possible? Then next year I’ll start putting in the maximum along with catch-up.
A. Your TSP contributions must come from payroll deferral or, you may transfer eligible money into your TSP account from an IRA or other Qualified Retirement Plan.
November 28th, 2011 at 12:06 pm
The “A” missed the mark… YES, you can elect 100% of your next two paychecks (that’s all that’s remaining in 2011) to your TSP, as long as the combined total doesn’t max out the allowed annual contribution of $16.5K. However, at this stage, you’ll probably only get one paycheck period to max out on, as it usually takes a couple of weeks for a “change” to process. And then you’d need to remember to make another “change” to reflect the amount you want to deposit for 2012.