AD Military Maxing out TSP

[air4cedude]

Hey Guys and Gals,

I'm trying to max out my TSP this year but myPay only allows me to contribute a percentage of my base pay in 1% increments which makes it impossible to contribute exactly $15,500. How do I contribute exactly $15,500. Is it possible to contribute too much and be penalized? What's the penalty? I'm afraid I might go over by about $50.

Thanks,

Scott

 

[dannyboy]

Hey Guys and Gals,

I'm trying to max out my TSP this year but myPay only allows me to contribute a percentage of my base pay in 1% increments which makes it impossible to contribute exactly $15,500. How do I contribute exactly $15,500. Is it possible to contribute too much and be penalized? What's the penalty? I'm afraid I might go over by about $50.

Thanks,

Scott

Hi and thanks for your service,
To get into the Thrift Savings Plan you go to a computer that has internet access and go to www.tsp.gov . Then you need to have an account, then you'd enter this into the screen, then your password. It has been awhile since I went through this process, but I imagine if you try surfing around through this site and try this uniformed services (and certain other employees). I know there are many phone numbers in this site that can help you in getting your money going into the tsp system. I feel that you will be needing to fill out some forms with your timekeeper or paymaster.
The tsptalk.com is just a support system for helping people with tsp accounts to make more informed choices. I'm not sure but when you mentioned PayPal that sent off a beeper in my brain that connected to the more pro's who have up-teen degrees in buisness that give you their advice for a fee, which may be right.
Thanks, DannyBoy

 

[air4cedude]

Sorry I guess I wasn't clear enough. I've been contributing to TSP for quite some time. I've contributed $14,239.56 so far this year which means I need $1,260.44 taken out this month to reach exactly $15,500.

myPay, which is the military pay website, is what we use to change our TSP allocation (among many other pay related services) and it doesn't allow us to specify a dollar amount.

How do I ensure I contribute exactly $15,500 this year?

Thanks,

Scott

 

[JTH]

It's too late to do it this year because any changes you make now, won't go in effect untill next month.

 

[air4cedude]

It's too late to do it this year because any changes you make now, won't go in effect untill next month.

So if they don't automatically adjust it and I go over by $50. What is the penalty?

 

[dannyboy]

So if they don't automatically adjust it and I go over by $50. What is the penalty?

12-10-08 I believe all federal paydays are the same. There are 2 federal paydays left for this year(12-12-08,12-26-08). I'm not too sure about AF regulations, but my advice is to check with your personnel office and see if they can put whatever amount that you want of your last check this year into your account. As far as a penalty, NO!, the TSP will only accept the max pay that it can take according to your wishes, then accepts no more, non-profit. If your over 50?, then you may be able to make a Catchup Contribution of any or all your last pay
Catch-up contributions ?

Good Luck,
Dannyboy

 

[peterson82]

For 15500 a year:

If the site lets you put in two decimal places, I would use this formula

% = (15500 / Your Base Pay) x 100

Then truncate everything past the second decimal place.

If the site only allows integers you must truncate the decimals off. (You cannot round because rounding up will cause the contribution to be greater than 15500).

Hope that is what you meant!

 

[JTH]

So if they don't automatically adjust it and I go over by $50. What is the penalty?

That type of question would probably have to be answered by the TSP folks. If I had to guess, I'd guess that because everything is electronic, the extra money would be rejected. Or, finance wouldn't let the extra money get transfered.

But I really haven't a clue, but do let us know what you find out. Maybe one year I'll be lucky enought to max out.

 

[peterson82]

But then again for 2009 it moved up to 16500! So if you plan on doing 16500 next year replace the 15500 with 16500.

 

[Buckeye]

Hello, and welcome air4cedude! If you're looking for investment knowledge, especially pertaining to TSP, you have arrived at the right place. I very rarely post, but I can't resist helping a fellow Airman.

I'm trying to max out my TSP this year but myPay only allows me to contribute a percentage of my base pay in 1% increments which makes it impossible to contribute exactly $15,500.

Good job at attempting to max! I understand the problem you speak of.

How do I contribute exactly $15,500.

Upon reaching $15,500, no more pay will be deducted(confirm on LES) regardless if you reach the limit in May, September, December, or any other month.

Is it possible to contribute too much and be penalized? What's the penalty? I'm afraid I might go over by about $50.

Not possible/no penalty. Like I said, it doesn't matter what month you max out in, all contributions are automatically cut off for the rest of the year after the max is reached.

I've been contributing to TSP for quite some time. I've contributed $14,239.56 so far this year which means I need $1,260.44 taken out this month to reach exactly $15,500.

Sorry to be the bearer of bad news, but it is too late for 2008. Your next contributions will be counted for 2009. This is simply because the contribution comes from EOM pay, but doesn't hit TSP until 2nd or 3rd business day of the following month. Simply put, if you want to reach the max, it needs to be done by early December, with the money earned in November.

There are 2 federal paydays left for this year(12-12-08,12-26-08).

That is true, danny. But for active duty folks like us, TSP contributions are only made once a month.... and they don't hit the account until the following month. I have no idea why, but it is so.

air4cedude, again, welcome. Take time to browse around and learn a few things. This website is a wonderful resource and well worth the time.

 

[JTH]

Buckeye, you're like the oldest Rookie on this Forum?

Nevertheless, great post

 

[Buckeye]

Thanks for the kind words JTH. I try to chime in when I feel I can assist. At the ripe old age of 29, I'm not sure if I qualify as the oldest rookie... but I may hold the title of "rookie who has held membership the longest". I understand my post counts don't reflect it, but I visit this website daily. Unfortunately, time is a major issue for me. Between wife, kids, work, school, deployments, and the wife's business... I'm usually pretty tapped. But I always set aside a little time to drop by, even though my footprints are mostly unseen.

 

[Buckeye]

How ironic that the last post tore me from my coveted rookie status.:laugh:

 

[Diesel]

Welcome to the boards Airforcedude.

I think I qualify for the oldest rookie. 42 years old. Retired US Army.

Great site. Learnd TONS since I started trolling the boards. LOST a lot by not trolling these boards. Even though it's on paper.

 

[air4cedude]

Sorry to be the bearer of bad news, but it is too late for 2008. Your next contributions will be counted for 2009. This is simply because the contribution comes from EOM pay, but doesn't hit TSP until 2nd or 3rd business day of the following month. Simply put, if you want to reach the max, it needs to be done by early December, with the money earned in November.

Are you saying the money taken out of my paycheck this month for TSP will count toward 2009?

 

[air4cedude]

Well I just got my LES and my TSP contribution for this year is exactly $15,500.

The contributions for this month will count towards this year (2008) even though the shares will be purchased in 2009.

My pay system automatically reduced my contribution this month so that I would'nt go over $15,500.

Hopefully this post will help people with the same question in the future.

Thanks to all who replied and have a Merry Christmas everyone!!!

 

[8_percent]

Hello, and welcome air4cedude! If you're looking for investment knowledge, especially pertaining to TSP, you have arrived at the right place. I very rarely post, but I can't resist helping a fellow Airman.


Good job at attempting to max! I understand the problem you speak of.


Upon reaching $15,500, no more pay will be deducted(confirm on LES) regardless if you reach the limit in May, September, December, or any other month.


Not possible/no penalty. Like I said, it doesn't matter what month you max out in, all contributions are automatically cut off for the rest of the year after the max is reached.


Sorry to be the bearer of bad news, but it is too late for 2008. Your next contributions will be counted for 2009. This is simply because the contribution comes from EOM pay, but doesn't hit TSP until 2nd or 3rd business day of the following month. Simply put, if you want to reach the max, it needs to be done by early December, with the money earned in November.


That is true, danny. But for active duty folks like us, TSP contributions are only made once a month.... and they don't hit the account until the following month. I have no idea why, but it is so.

air4cedude, again, welcome. Take time to browse around and learn a few things. This website is a wonderful resource and well worth the time.

air4cedude or anyone else for that matter outstanding job of maxing TSP. Sounds like you have a hold on financial management.

 

[nnuut]

Air4cedude, 8 percent - Welcome to the Message Board, I think I missed you two? Glad to have you here. I was an Air Force Dude at one time, long ago!!
Norman

 

[8_percent]

nnuut, thanks for having me. I'm reading more and more of these threads every chance I get to gain knowledge and insight on basic and simple investing.

 

[Harley69]

Just for future referrence for anyone else worried about this for next year. If your payroll doesn't stop the contributions and TSP sees you went over the limit, they will automatically sent you a check to reimbuse you so you don't get in trouble with the IRS. If you have more than one tax deferred account, there is a form on the website where you can request the money back and avoid any penalties from the IRS.