leaving fed. service - still contribute to max out last year?

[mm1]

Is it possible to contribute to one’s TSP account after leaving federal service in order to catch up and maximize one’s contribution ($15,500 I think) for the last year of federal service? More specifically, I left fed. service this year, but would like to hit the $15,500 limit for 2008. Is that possible?

Also, is it possible to do the same for previous years? For example, if I didn’t reach the contribution limit for 2006 while working with the gov., can I put in that extra money now, while not working for the federal government?

Thank you.

 

[XL-entLady]

Is it possible to contribute to one’s TSP account after leaving federal service in order to catch up and maximize one’s contribution ($15,500 I think) for the last year of federal service? More specifically, I left fed. service this year, but would like to hit the $15,500 limit for 2008. Is that possible?

Also, is it possible to do the same for previous years? For example, if I didn’t reach the contribution limit for 2006 while working with the gov., can I put in that extra money now, while not working for the federal government?

My experience, as I recall, was that OPM sent a copy of my separation notice to TSP and then TSP sent me a notice that my account was closed to contributions and that I needed to decide how to make my withdrawals.

If that becomes your experience too, there are other ways to get where you want to go, however. For example, fund a traditional IRA if you don't want to pay taxes on a Roth. Or if you'd like to put even more money away, start a business (whatever your hobby is, for example) as a sole proprietor and then start a solo 401K.

Good luck,
Lady

P.S. I just saw the title of this thread .... Oops, Tom, didn't mean to step on the toes of the Master! L.

 

[Frixxxx]

Sorry Tom but I know you're a busy man!

Is it possible to contribute to one’s TSP account after leaving federal service in order to catch up and maximize one’s contribution ($15,500 I think) for the last year of federal service? More specifically, I left fed. service this year, but would like to hit the $15,500 limit for 2008. Is that possible?

The following post shows information on catch-ups.
http://tsp.gov/forms/oc03-03.pdf
Since it is done through payroll deductions and you're not on the payroll then I would have to say no.

Also, is it possible to do the same for previous years? For example, if I didn’t reach the contribution limit for 2006 while working with the gov., can I put in that extra money now, while not working for the federal government?

Thank you.

Also stated that these deductions are made for that tax year, so I would say you can't go back and catch-up on the catch-up. (Did I really type that?!?)

 

[tsptalk]

Oops, Tom, didn't mean to step on the toes of the Master!

Sorry Tom but I know you're a busy man!

No, I appreciate the help. This thread is supposed to be for questions specific to me like, "Don't I owe you money, Tom?"

So by all means, answer the questions if they are general.

Thanks!