Where does the money go?

[EricDeLee]

I've been a bit curious at this question lately...
when you contribute to TSP from a military paycheck... Your payments are taken out of your check on the 1st and then the other half will be taken out of the check on the 15th.

Then your contribution makes it into your TSP roughly the 3rd day of the month.

So... When that money is taken out on the first paycheck, where does it go? Do we simply loan free money to The Govt?

 

[PessOptimist]

I've been a bit curious at this question lately...
when you contribute to TSP from a military paycheck... Your payments are taken out of your check on the 1st and then the other half will be taken out of the check on the 15th.

Then your contribution makes it into your TSP roughly the 3rd day of the month.

So... When that money is taken out on the first paycheck, where does it go? Do we simply loan free money to The Govt?

I cannot answer your question as there was no TSP option when I retired from the AF (96).

I can share what I have found by reviewing my civilian LES. Our amounts vary slightly occasionally due to the matching %.

I am not rubbing it in, just stating a fact. I feel you too should get matching. I know you do not.

Since the amounts occasionally vary, it is possible to track the amount on my LES with my TSP transactions.

I have found that the amount credited to my TSP account on Monday is from the same pay deposit I get Wednesday. So it would appear they are fronting me the money. That of course is not true since the pay period ended 13 days before payday and the LES is usually available on line 1 week before the actual payday.

You will find dozens of answers to your question but the only way to find out may be to change your allotment for one month, change it to make up the difference the next and change it back to the original amount the third month. That way you can track what money actually goes in to TSP when.

Doing this may be a PITA but I know of no other way to really tell. DFAS (my pay agency for my civilian pay), TSP and other experts may give you an answer but it may not be correct answer to what you are asking.

PO

 

[Frixxxx]

I've been a bit curious at this question lately...
when you contribute to TSP from a military paycheck... Your payments are taken out of your check on the 1st and then the other half will be taken out of the check on the 15th.

Then your contribution makes it into your TSP roughly the 3rd day of the month.

So... When that money is taken out on the first paycheck, where does it go? Do we simply loan free money to The Govt?

The way it works with military is that your actually paid once and then it is dispersed over the two pay times. This allows the government to ensure allocations and disbursements are evenly dispersed. Your TSP is a disbursement.

I cannot answer your question as there was no TSP option when I retired from the AF (96).

I can share what I have found by reviewing my civilian LES. Our amounts vary slightly occasionally due to the matching %.

I am not rubbing it in, just stating a fact. I feel you too should get matching. I know you do not.

Since the amounts occasionally vary, it is possible to track the amount on my LES with my TSP transactions.

I have found that the amount credited to my TSP account on Monday is from the same pay deposit I get Wednesday. So it would appear they are fronting me the money. That of course is not true since the pay period ended 13 days before payday and the LES is usually available on line 1 week before the actual payday.

You will find dozens of answers to your question but the only way to find out may be to change your allotment for one month, change it to make up the difference the next and change it back to the original amount the third month. That way you can track what money actually goes in to TSP when.

Doing this may be a PITA but I know of no other way to really tell. DFAS (my pay agency for my civilian pay), TSP and other experts may give you an answer but it may not be correct answer to what you are asking.

PO

Agree with everything PO has said here (except of course for the matching). Not to take away from the military (I have 21 years 9-Active, 12 Reserves) but they have a pension plan. HOWEVER, I would agree to matching IF & when the member actually retires, those funds are used to offset the annuity to pay them for the rest of their lives.

 

[FatMoneyClip]

I've been a bit curious at this question lately...
when you contribute to TSP from a military paycheck... Your payments are taken out of your check on the 1st and then the other half will be taken out of the check on the 15th.

Then your contribution makes it into your TSP roughly the 3rd day of the month.

So... When that money is taken out on the first paycheck, where does it go? Do we simply loan free money to The Govt?

I am guessing the check is in the mail