|
Post by ruonthelist on Jul 24, 2009 6:46:51 GMT -5
I want to to do the catch-up 5.5K extra contribution given my "elder" status... The catch-up is a good option for those of us who are chronologically enhanced. But note that to make catch-up contributions you have to make the max regular contribution over the course of the year: Here is what it says on the TSP website: Catch-up contributions are supplemental tax-deferred contributions available to TSP participants age 50 or older who are already contributing the maximum amount of regular TSP contributions for which they are eligible, up to the maximum IRS elective deferral limit of $16,500 for 2009. Catch-up contributions have their own annual limit of $5,500 for 2009. Increases are indexed to inflation. www.tsp.gov/features/chapter02.html#sub12If you work for the feds for the whole year contributing the max regular amount means putting in $635 (rounding up) per pay period. For those of you starting now, you have less time to put it in, which means you have to put in a lot more per pay period in order to max out for 2009. That is OK, if you can handle the reduction in your take home pay. Depending on your personal situation, it might be a good idea to wait a few pay periods to see what your cash flow situation is before starting the catch-up contributions.
|
|