Missed TSP Catch-Up for PPE 12/15/12

[PessOptimist]

Checking my work e-mails while on AL, I discovered one from the payroll people. Seems they made an oops.

From: Payroll CSR Help Desk [PayrollCSRHelpDesk@hq.doe.gov]
Sent: Thursday, December 27, 2012 5:28 AM
To: Payroll CSR Help Desk; CHRISBENEFITS
Subject: Missed TSP Catch-Up for PPE 12/15/12

Hello:

This communication is to advise you that due to an error in the DOE transmission of data to DFAS (our payroll service provider), your TSP Catch-up contribution for the pay date of December 27, 2012 was not deducted.

If you are retiring on December 31, 2012 through January 3, 2013, please contact your retirement specialist immediately for guidance on how to make up the Catch-up contributions.

The information that follows outlines how the contributions can be made up and how they will be treated for tax purposes.

· Contributions can only be made by payroll deduction; therefore, the steps outlined below will be used for making up the contributions.
· The tax implications on the makeup contributions will be credited in 2013.
· The makeup contributions will be applied to the 2012 IRS deferral limits and will not have any effect on the 2013 limits.
· There will be no corrected W-2 issued for the makeup contributions for 2012.

The following steps are being put in place to allow for the contribution to be made up.

· DFAS will issue a TSP Missed Contributions letter detailing the options you have to make up the missed Catch-up contribution.
· When you receive the letter from DFAS, please complete it and return it to DFAS as soon as possible for processing. The form may be mailed or faxed to DFAS.
· The form will be processed and the deductions will be made as soon as possible after receipt by DFAS.

For assistance, please contact the DOE Payroll Helpdesk by return email to: PayrollCSRHelpDesk@hq.doe.gov. Please ensure that “Missed TSP Catch-up” is in the subject line. Or you may contact CHRIS Benefits at CHRISBENEFITS@hq.doe.gov.

We apologize for the inconvenience this has caused and will work with you to resolve this issue as quickly as possible.

Sincerely,
CHRIS Benefits
DOE Payroll Team

Interesting that the tax benefit will not be credited for 2012. Interesting it is up to the payee to fill out a form to fix the problem.

Any one else paid by DFAS or any other agency get this notification?

In the interest of starting/furthering a conspiracy theory, how much will the fed receive by not allowing this tax benefit for 2012?

Some on this forum state there are few people contributing the max amount and the catch up amount. I state that there are a lot of us, especially ones who started the fed career later in life and are trying to maximize the benefit.

The amount of tax deferred income in my case is $200.

Happy 2013 everyone.

PO

 

[PessOptimist]

I received a letter from DFAS which I can sign and fax back. The letter states if I wish to make up the missed contribution the amount will be deducted from my next paycheck and they will send a corrected W2 in February. It further states I must return the letter within 60 days of my reemployment in or restoration to civilian service.

The previous notification I received about this stated that:

· There will be no corrected W-2 issued for the makeup contributions for 2012.

Sounds like DOE and DFAS are communicating pretty good here. I think that for 200 bucks more in my TSP balance and the subsequent difference in AGI for 2012 (maybe) I will just let this one slide.

PO

 

[PessOptimist]

Latest update from my finance people.

From: Payroll CSR Help Desk [mailtoayrollCSRHelpDesk@hq.doe.gov]
Sent: Wednesday, January 23, 2013 11:57 AM
To: Payroll CSR Help Desk; CHRISBENEFITS
Subject: RE: Missed TSP Catch-Up for PPE 12/15/12 -- IMPORTANT UPDATE
Importance: High



Hello:

DFAS would like to clear up misstatements on the letters sent out to employees that did not have their last TSP Catch Up deducted from their paychecks for PPE 12/15/12; pay date 12/27/12:

1. The letters sent to employees should not have stated any regulations or public law pertaining to USERRA.

2. The letters must be returned to DFAS within 30 days from the date of the letter.

3. W2 tax implication will be documented on their 2013 W2 that you will receive by January 31, 2014. You will have at least 2 entries in Block 12. The current deductions for 2013 will be in Block 12 as well as another entry with the year 2012 along with the amount withheld for 2012. This will indicate that the amount stated was for a previous tax year.

4. The employee can have the missed deductions made up in 1 or 2 pay periods.

5. For those employees who have NOT returned their letters and would like to make up the missed contribution, you can indicate under the section “I do want to make up the missed contribution”, indicate the number of pay periods (either 1 or 2) in this block. Once the letters are received, DFAS will make the deduction(s) starting within that same pay period.

6. For those employees who have already returned their letters and stated that they would like to make up the missed contribution, and would like to make it up in 2 pay periods, please resubmit the letter by COB on 01/29/13 with correction written across the top and indicate 2 pay periods under the section “I do want to make up the missed contribution”. Otherwise, those who did respond and we do not receive a correction letter; the whole amount will be deducted from PPE 01/26/13; pay date 02/07/13.

7. For those employees who have already returned their letters and stated that they did NOT want to make up the missed contribution, and would like to change their minds due to being able make it up in 2 pay periods, you may resubmit the letter by COB on 1/29/13 with correction written across the top and indicate 2 pay periods under the section “I do want to make up the missed contribution”. Otherwise, we will assume you still do not wish to make up the missed contribution.

For assistance, please contact the DOE Payroll Helpdesk by return email to: PayrollCSRHelpDesk@hq.doe.gov. Please ensure that “Missed TSP Catch-up” is in the subject line. Or you may contact CHRIS Benefits at CHRISBENEFITS@hq.doe.gov.

Again, we apologize for the inconvenience this has caused and will work with you to resolve this issue as quickly as possible.

Sincerely,
CHRIS Benefits
DOE Payroll Team

There doesn't seem to be a whole lot of interest in this but since I started it I feel obligated to update it as it develops. I find it interesting how effeciently these two agencies are handling this.

PO

 

[nasa1974]

Thanks PO.