Congress bill- TSP and Annual Leave

[James48843]

From http://govexec.com today:

Lawmakers to unveil leave investment bill for TSP

By Alyssa Rosenberg arosenberg@govexec.com March 15, 2010

Lawmakers plan to introduce a bipartisan bill this week that would allow federal employees to invest the cash value of their unused annual leave in their Thrift Savings Plan accounts, retirement program staff said on Monday.

Rep. Stephen Lynch, D-Mass., chairman of the House Oversight and Government Reform Subcommittee on the Federal Workforce, and Rep. Jason Chaffetz, R-Utah, will introduce the legislation, Thomas Trabucco, director of external affairs for the TSP, said during the Federal Retirement Thrift Investment Board's monthly meeting.

The Internal Revenue Service moved in September 2009 to allow private sector employers to deposit the value of their employees' unused leave in 401(k) accounts. Contributions from annual leave would not count as a separate category of retirement savings and would be subject to the annual limits on such contributions, which are $16,500 for employees younger than 50 and $22,000 for those who are 50 or older.

More: http://www.govexec.com/story_page.cfm?articleid=44794&dcn=todaysnews

 

[Frixxxx]

Useless, 4 me


I max already....wish I was 50.

I may have to figure out how to get the wife to adjust so I can do this....

Math too hard!

Question: Maybe Roth Contribution elligibility?

 

[nnuut]

Yeah, NOW they want to do this, Good Timing!! I would have loved to put my cashed in leave in the TSP!!:nuts:

 

[clester]

I'll take the cash, thank you. 76 days to go!

 

[nnuut]

I'll take the cash, thank you. 76 days to go!

Congrats you're almost there, Apprehensive? I was, it's really exciting in a strange way, lots of stuff to do. I hope they pass the bill so folks can benefit by sweetening the TSP pot!!

 

[Scout333]

From http://govexec.com today:

[The Internal Revenue Service moved in September 2009 to allow private sector employers to deposit the value of their employees' unused leave in 401(k) accounts. Contributions from annual leave would not count as a separate category of retirement savings and would be subject to the annual limits on such contributions, which are $16,500 for employees younger than 50 and $22,000 for those who are 50 or older.
More: http://www.govexec.com/story_page.cfm?articleid=44794&dcn=todaysnews

We'll have to watch the date for retirement. Due to the annual contribution limits may want to make sure the annual leave gets deposited early in the year after retirement. i.e. Jan. 1,2, or 3 so that it won't count against your limitation for the last full year you work especially if you roll over 240 hours of AL and accrue 208 hours for the current year. You could easily exceed the annual contribution limit with AL alone.

 

[Frixxxx]

You could easily exceed the annual contribution limit with AL alone.

How much do you make? Cause $16,500 divided by 240 = $68.75 an hour

$68.75 * 2040 = $140,000 a year

Dude, I want your job!

 

[nnuut]

I cashed in 419 hours! The deal is you build your 240 then the last year don't use any annual leave and cash it all in! 240 + 208 = 448 max I had to use a few hours. You Postal folks can build up to 750 hours, I wish I could have done that WOW!!

 

[clester]

Congrats you're almost there, Apprehensive? I was, it's really exciting in a strange way, lots of stuff to do. I hope they pass the bill so folks can benefit by sweetening the TSP pot!!

A little, I guess, but I have had with my employer. I am sooo ready to move on.

It is exciting. When you get as old as I am not much seems exciting anymore. So, I like the feeling. Free at last! Free at last!

 

[James48843]

A little, I guess, but I have had with my employer. I am sooo ready to move on.

IF you are retiring- congrats-

If you are looking for a different Agency, with different challenges, be sure to check out "Best places to work in the Federal Government" at:
http://data.bestplacestowork.org/bptw/index for an indication of what things might be like at other places.

 

[clester]

Yep. Retiring. Thanks though.