Do you include GOV contribution when talking %?

[Hybrid93Hatch]

A co-worker and myself were discussing TSP. He mentioned that he has been putting in 17% for the past few years. I was pretty amazed by the number considering I just bumped mine to 15% from 13%. But, I got to thinking did that number include the 5% the gov throws in or not. I asked him and the 5% from the GOV was included.

So, when/if you were to mention the percentage amount you are contributing to TSP, do you include the gov matching or just what you are putting in?

Curious....

 

[SkyPilot]

A co-worker and myself were discussing TSP. He mentioned that he has been putting in 17% for the past few years. I was pretty amazed by the number considering I just bumped mine to 15% from 13%. But, I got to thinking did that number include the 5% the gov throws in or not. I asked him and the 5% from the GOV was included.

So, when/if you were to mention the percentage amount you are contributing to TSP, do you include the gov matching or just what you are putting in?

Curious....

Usually, we are discussing our personal contribution as it is understood that the Gov't contributes matching up to 5% automatically.

 

[OBGibby]

A co-worker and myself were discussing TSP. He mentioned that he has been putting in 17% for the past few years. I was pretty amazed by the number considering I just bumped mine to 15% from 13%. But, I got to thinking did that number include the 5% the gov throws in or not. I asked him and the 5% from the GOV was included.

So, when/if you were to mention the percentage amount you are contributing to TSP, do you include the gov matching or just what you are putting in?

Curious....

No percentage for me - I just say "the max."

 

[poolman]

A co-worker and myself were discussing TSP. He mentioned that he has been putting in 17% for the past few years. I was pretty amazed by the number considering I just bumped mine to 15% from 13%. But, I got to thinking did that number include the 5% the gov throws in or not. I asked him and the 5% from the GOV was included.

So, when/if you were to mention the percentage amount you are contributing to TSP, do you include the gov matching or just what you are putting in?

Curious....

I think of it like this. When talking how much one contributes the 5% is inclusive in whatever number is thrown around.

For me it's the Max though which I think is 15.5% or 16. I don't know exactly. I think you can contribute more after a certain age. Not sure on that either.

 

[Frixxxx]

So, when/if you were to mention the percentage amount you are contributing to TSP, do you include the gov matching or just what you are putting in?

Curious....

OK, hypothetical:

16,500 is the max which I put in

5,000 5% of my (100K)

Total Contribution 21,5000

Now, I consider the 5000 as a bonus.

Now, you can say it is "deserved" benefit - you would have gotten it anyway, but any other form means taxes and nightmares (cept IRA)

Now, without this 5% you can do the math and compare.....It adds up quick, but either way you look at it, it wasn't yours and your not required to pay taxes on it. It "becomes" yours!

I hardly ever use it as "interest gained" but it could be.....

GOAL is to get as much as you can before you need to quit....:nuts:

 

[Cheng]

Also you can contribute another 5k as "catch up" contributions if you are over 55 for a total of $21,500.00 plus 5% of your base pay. Max out what you can afford to get the free match while the getin's good.

 

[Cheng]

Sorry, I meant 50 years old vice 55.

 

[tsptalk]

From www.tsp.gov:

What are "catch-up contributions"?
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 and $16,500 for 2010. Catch-up contributions have their own annual limit of $5,500 for 2009 and $5,500 for 2010. Increases are indexed to inflation.

If you are eligible, you can submit an election at any time to make these contributions. Use Form TSP-1-C, Catch-up Contribution Election, available in the Forms and Publications section of this Web site or from your agency. Some agencies may use an electronic version of the form. Check with your agency for guidance.

Your contributions are invested in the TSP funds according to your most recent contribution allocation. You can change, stop, or restart your catch-up contributions at any time. Your contributions will automatically stop at the end of the calendar year or when you reach the maximum dollar limit for the year. You must make a new election each calendar year. Agencies do not match catch-up contributions.
Your catch-up contributions are deducted from your basic pay each pay period; therefore, you must be currently employed by the Federal Government and receiving pay. In addition, you may not be in the 6-month non-contribution period following receipt of a TSP financial hardship in-service withdrawal. For more information, read the TSP Fact Sheet “Catch-up Contributions.”