Ask The Experts: Money Matters

By Mike Miles

Changing TSP contribution

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Q. I will retire from the Postal Service this summer. Can I change my contribution to the Thrift Savings Plan to several thousand dollars on my terminal leave check to allow me to not pay taxes and increase my TSP account balance? Congress has not yet finalized this proposal.

A. No.

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Comments

  1. JHenJoh Says:
    July 30th, 2012 at 10:52 am

    I believe you can contribute any amount you want on a paycheck as long as the other mandatory payments (FEHB, FEGLI, etc.) are made first, and you do not go over the maximum for the year. If nothing else, bump it a $1K or more for several paychecks leading up to your separation, if you have the wherewithal to deal with the shortage. I did this at the end of last year to reduce my annual income.

  2. Mike Miles Says:
    August 11th, 2012 at 12:47 pm

    Under current law, a terminal leave check is not elgible for this.