The NEW 2006 unlimited contribution limits (YAY!)

[bkrownd]

imported post

As most of you know, starting January 2006 there is no longer any per-pay-period TSP contribution limit, so we can run our TSP up to the $15000 IRS limit however we desire. (and there was much rejoicing) The time has come to fill out our TSP-1 forms for this change. However I'm not 100% clear on WHEN the new rule takes effect. What is the first pay period without contribution limits? Is it the first pay period that includes work dates in January 2006? (pay period 1) Is it the first paycheck of the 2006 tax year, which is the first one deposited in January, covering about the last two weeks of 2005? (pay period 25 last year) I fear that it may take until the end of January to get the adjustment right, since the TSP-1 form disappears into the Paperwork Black Hole for a while before we see if they've made the changes as we intended, and when they really went into effect. Has anybody worked this out yet?

tia,
bkr

 

[Dave M]

imported post

There is a pay period calendar at

https://www.nfc.usda.gov/personal/ep_warning.asp.

Under the "Self Service" pulldown meu, you may set your changes to take effect on PP1 2006. This is the electronic version of the paper form. To reach the max, divide $15000 by 26 and you get $577 per PP. For those of us over 50, divide $5000 by 26 and get $192 per PP. These are the numbers you would enter in their little form. They email you back and tell you exactly when it takes effect, etc.

Dave

 

[grandma]

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In the VA system we use the www.employeeexpress.govto make most any & all changes for payroll & personal information. I think there are about 50 other Fed agencies using it.Different agencies must contract w/different outfits

What is `nfc?' in the world of agriculture?? ..non farm ...??

snow in NWAr last night!!

 

[Soldat]

imported post

I like the new unlimited aspect because 1. We can frontload our TSP, 2. We can contribute, say, 50% of pay while we are in tax free zone, and then contribute nothing while we are in the states. This helps immensely.

 

[Wimpy]

imported post

NFC=National Finance Center

 

[bkrownd]

Aaaarrrrghghhghghgh! I sent in my TSP-1 to double my TSP contributions in early December, and I still only got the old 15% contribution for the first pay period of 2006 tax year. By the time it finally goes through I may need to send in another one to make up for the lost contributions. Well, I guess I'll get an earlier start on my Roth IRA...

 

[bkrownd]

Hmmm...perhaps my contribution did increase. My pay is such a mess of ever-changing proportions of hazard pay, overtime, holiday worked/not, COLA, etc, etc, that it's hard to figure out what to expect without seeing the actual pay stub. I also forgot about all the pay rates increasing. whew

 

[bkrownd]

Yay, they increased my contribution in time for 2006. Sadly, all that new money went in after this week's price increase. :/