TSP Contribution limit going up for 2012

[James48843]

The cap on individual TSP contributions is increasing $500, from $16,500 to $17,000 next year as a result of the change in the cost-of-living index, the IRS announced this week. The increase also applies to those who participate in 401(k), 403(b) and most 457 retirement plans. The catch-up contribution limit for those 50 and older remains the same, at $5,500.

More:

http://www.govexec.com/story_page.cfm?articleid=49147&oref=todaysnews

 

[Frixxxx]

Re: TSP Contribution limit going up fpor 2012

Started planning for 2012 Investment year ($17,000 Max:nuts and have provided this spreadsheet to show percentage numbers against pay periods. I hope this helps in making decisions for your future.

I defaulted at 4% because most investors here are contributing for the match level. Anyone can adjust to their levels by manipulating the sheet. I hold no copyright on math.

I personally will adjust my dollar amount to $653.84 per pay period to ensure I recieve the max from Uncle Sam.

$653.84 * 26 = $16,999.84

Good Luck All!

 

[nasa1974]

Re: TSP Contribution limit going up fpor 2012

Started planning for 2012 Investment year ($17,000 Max:nuts and have provided this spreadsheet to show percentage numbers against pay periods. I hope this helps in making decisions for your future.

I defaulted at 4% because most investors here are contributing for the match level. Anyone can adjust to their levels by manipulating the sheet. I hold no copyright on math.

I personally will adjust my dollar amount to $653.84 per pay period to ensure I recieve the max from Uncle Sam.

$653.84 * 26 = $16,999.84

Good Luck All!

Now if the FRTIB would increase our IFT's it would be a "win/win".

 

[tsptalk]

Re: TSP Contribution limit going up fpor 2012

and have provided this spreadsheet to show percentage numbers against pay periods. I hope this helps in making decisions for your future.

+1 ... thanks!

 

[Frixxxx]

Correction....EBIS only allows whole numbers for contributions.

$653 per pay period * 26 = $16,978

 

[SteelSaving]

Great file, thanks!

Incredible to think that I could max out my contributions and still have a higher salary at that point then I did two years ago.
Why did I move to a more expensive place?

 

[KneednDough]

Question 1: Does the max of $17,000 apply to anyone with a TSP account, or is there eligibility requirements?
Question 2: I currently put in 15%, so would I change it to say 20%, or do I have to enter in an actual dollar amount into EBIS if I choose to put in anything above 15%?
Question 3: Does the catch up plan mean you can put in a total of $22,500 ($17,000 + $5,500)?

Thanks,
Nate

 

[Frixxxx]

Question 1: Does the max of $17,000 apply to anyone with a TSP account, or is there eligibility requirements?
Question 2: I currently put in 15%, so would I change it to say 20%, or do I have to enter in an actual dollar amount into EBIS if I choose to put in anything above 15%?
Question 3: Does the catch up plan mean you can put in a total of $22,500 ($17,000 + $5,500)?

Thanks,
Nate

Question 1: IRS limits for 401K, 401G, 507, 403B must be a qualified investment for tax deferment.
Question 2: Either/OR it reads funny but if you select percentage and type in 20%, then it is calculated out of your pay. If you do dollar amount, you specify the amount. I only provide the spreadsheet to show what the dollar amount equivalence comes out to for those not savvy with math!
Question 3: Catch-up means that!
From www.tsp.gov :
[h=4]Catch-Up Contributions[/h]You can begin making catch-up contributions at any time beginning in the year you turn 50. Catch-up contributions are also deducted from your pay before taxes are withheld. To be eligible to make catch-up contributions, you must expect to contribute the maximum amount allowed of regular employee contributions for the year to the TSP or to an equivalent tax-deferred employer plan, such as a private sector 401(k) or nonprofit 403(b) employer plan.

 

[Frixxxx]

Great file, thanks!

Incredible to think that I could max out my contributions and still have a higher salary at that point then I did two years ago.
Why did I move to a more expensive place?

You're in Kansas....How expensive can it be?

 

[KneednDough]

So in regards to question 1, if I contributed more than 15% (only 34 years old, so no catch up contributions) would I be penalized come tax time at the end of the year?

Thanks for your input.

 

[Frixxxx]

So in regards to question 1, if I contributed more than 15% (only 34 years old, so no catch up contributions) would I be penalized come tax time at the end of the year?

Thanks for your input.

No, you're max is $17,000. The 15% number you hear all the time is the employer percentage (401K). For gov't employees(401g or equivalent), they allow up to $17K. I think the confusion is how the private sector talks about 401K.

Clearly from www.tsp.gov :
https://www.tsp.gov/planparticipation/eligibility/contributionLimits.shtml
Shows government employee limits accepted.

 

[SteelSaving]

You're in Kansas....How expensive can it be?

I won't complain about it comparing it to other locations ($895.00/month 3bdrm)
But I was happier with $500/month for a 1 bdrm.

Having a girlfriend is expensive.

 

[KneednDough]

Sweet. Thanks frixxxx. Now I just need the wife to make more so I can invest more. Lol

 

[Frixxxx]

Sweet. Thanks frixxxx. Now I just need the wife to make more so I can invest more. Lol

And I would love to hear the dinner talk ...."Honey...you need to make more money!"

I won't complain about it comparing it to other locations ($895.00/month 3bdrm)
But I was happier with $500/month for a 1 bdrm.

Having a girlfriend is expensive.

Yes Girlfriends are expensive..wives are more expensive....kids make you down right poor.
But the Spiritual wealth you receive can't be measured!

 

[KneednDough]

And I would love to hear the dinner talk ...."Honey...you need to make more money!"

Yes Girlfriends are expensive..wives are more expensive....kids make you down right poor.
But the Spiritual wealth you receive can't be measured!

Yes...............yes in deed.

 

[James48843]

Reminder: Now is the time to make any adjustments for 2012.

If your agency uses Employee Express, you can make a change today and it will be effective in the first pay period of 2012.

Once again, the "magic number" if you are trying to max your legal contribution amount, with matching funds, without counting any over-50 makeup , is to put in $654 per bi-weekly pay period.

[h=1]TSP Contributions for 2012[/h]December 16, 2011 – Employee Contribution Limits–TSP contributions are limited by the restrictions imposed by the Internal Revenue Code. The elective deferral limit for 2012 will increase to $17,000. This is the maximum amount you can contribute to your TSP account. See the fact sheet, "Annual Limit on Elective Deferrals" for more infomation.

Important Note for FERS Employees–If you want to contribute the full $17,000 it is important that your contributions continue throughout the entire calendar year. Once you reach the maximum, not only do your contributions stop but so does the Agency match.

To make sure you get the full Agency match, make a new TSP election on Employee Express during this pay period (the pay period ending 12/17/2011). Your election will be effective 12/18/2011 and will come out of your pay on 1/10/2012.

Since there are 26 pay dates in 2012, an election of $654 per pay period will take you through the entire year. If you are not contributing to the IRS limit, please consider contributing at least 5% so you will receive the full 5% Agency match.

Catch-up Contributions–If you are at least age 50 (or will become age 50 during the calendar year 2012) and if you have made or will make the maximum amount of employee contributions for the calendar year (e.g., $17,000 in 2012), you may also make catch-up contributions to your TSP account. The catch-up contribution limit for 2012 remains the same as the 2011 limit, $5,500. This is a separate election and is also done on Employee Express. See the fact sheet, "Catch-up Contributions" for more information.

TSP Catch-up is NOT automatic, you must enroll annually.

If you want to participate in TSP Catch-up during 2012 you must make a new election. You can enroll or cancel your TSP catch-up contributions at any time. You are not required to contribute the maximum amount of catch-up contributions. Your contributions will automatically stop at the end of the calendar year or when you reach the maximum dollar limit for the year. If you want to elect TSP catch-up for 2012 you must make your change electronically using Employee Express.

For additional information please contact the Benefits staff of your servicing human resource management office.

Good luck.

 

[PessOptimist]

It might be too early to make the change

It might be too early for some to make the change. I just logged in to Employee Self Service to submit the change and got the following message:

To update existing information, enter new data in the blank fields and click on SUBMIT to process.
This election is for calendar year 2011.

If you wish to make an election for pay year 2012, please do so on or after Sunday, December 18, 2011 .

Refer to the 2011 payroll calendar for guidance on determining your per pay period contribution.

The maximum elective deferral for TSP is $16,500

This update will be reflected on the paycheck issued on:
Thursday, December 29, 2011
​

This may vary by agency. It would not have been a major catastrophe if I had done it today as I would not have lost any matching funds. A quick calculation shows I would have to be making 300k+ for that to happen. Some of you FAA and NWS people though...:nuts:

 

[Boghie]

Re: It might be too early to make the change

Thanks James.

Number crunching the max bi-weekly contribution isn't hard, but you always present facts and numbers well and clearly. Now, I can drink a toddy, start up Quicken, and figure out how to get to $654 / pay period - which would probably cost me about $460 here in Kalefornea!!!

And, Merry Christmas (if that makes sense since I really don't know you )