YAY! My first deployment 'money fight' with wife - over TSP!

[James]

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GALLO1 wrote:

Sheasljj, you are correct that very few if any uniformed service people get the matching funds.

Actually no one in the military has ever received matching funds.

 

[Aggie76]

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Sorry about the mis-information. I relied on my failing memory as to this years IRS limit. I should of looked up the facts prior to posting.

 

[GALLO1]

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sheasljj wrote:

GALLO1 wrote:

Sheasljj, you are correct that very few if any uniformed service people get the matching funds.

Actually no one in the military has ever received matching funds.

Well, then this statement out of TSP is a little misleading,

"Under the law that extended the TSP to the uniformed services, the secretary responsible for each service may designate critical specialties for matching contributions. Members serving in those specialties who agree to serve on active duty for 6 years may be eligible for matching contributions during the 6-year active duty obligation."

In my opinion, as if it counts, I'd definitely be getting every military person I could to write his or her Congressman and use the chain of command.In the TSP quote above it sounds like the secretaryof each branch has final say as to who gets the matching funds. I'd take it a step further though and would argue that thiswould be an excellent benefit to offerto help retain their experienced service members. I'd think that would be as attractive, if not more than a reenlistment bonus.

I find it difficult to believe that someone hasn't been fanning the flames for this to happen because your highest-ranking officers wouldget the greatest benefit since they make the most money. Collectively, uniformed services need to make some noise and even if there's a serious intent to make this happen you'd probably looking 5-10 years down the road for it to take affect.

I can emphasize with your frustration, probably why I got out after one hitch.

 

[pyriel]

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Dogdaddy wrote:

Wrong........The IRS limit for 2005 is $14,000 + $4000 Catchup. In 2006 that IRS limit goes up to $15000 + $5000 catch-up with no TSP percentage limits. The way to avoid the year-end problem is to specify a dollar amount ($14,000/26=$539) to contribute per pay period, instead of a percentage........That way you max out the matching contributions, since the limit is not reached until the last pay period of the year.

So for next year allocate $15,000/26=$577 To TSP per pay period + $5000/26=$192 catch-up, if applicable. That way you will get the entire matching funds, which is 5% of your annual salary.

This is all explained in detail on the TSP website.

Thanks Dogdaddy... As always, your explanation seems to be clearer than mine. So I am just going to add to what you said. FERS employee please take a look at your last year's LES. If you were maxing out at 14% (for 2004) you'll find out that what went into your TSP is actually more than 14%. If you take a look at your LES now and you know you are maxing out your TSP 15%, you'll find out again that with 5% matching contribution, that your TSP contribution will go beyond 15% due to the matching contribution from your employer.

Hence, it only makes sense that those who are getting matching can sock away more than 15k for TSP on 2006 (15k + 5% matching). This does not pertain to military folks huhuhuhuhuhu..... Please do not just stop reading the TSP guideline. You must also read the IRS guideline on what they will allow us to save into our TSP. As far as the IRS is concern, they don't care aboutthe 5% matching since this will not show up at your W2 at the end of the year...:^