The 2020 IRS annual limit for regular TSP contributions will increase to $19,500. If you are covered by the Federal Employees Retirement System (FERS, FERS-RAE, or FERS-FRAE), you could lose valuable matching Agency TSP contributions by reaching the limit before the end of the calendar year. If you want equal payments deducted over the 2020 calendar year for 26 pay periods, you should contribute $750 each pay period. If you are currently contributing a lesser or higher amount, but want equal payments withheld over the course of the year that will equate to $19,500, you must enter your election of $750 into myPay.
If you would like to maximize your contributions for 2020, enter your myPay election between December 8 – December 14, 2019, and your election should be effective on December 22, the first pay period for 2020. Be certain to enter the amount you want withheld from your pay each pay period. If your election is entered after December 14, you will need to adjust your election amount. To determine the adjusted amount, use the Elective Deferral Calculator on the TSP website. To see the pay periods for 2020, view the HHS Payroll Calendar. If you have additional questions, refer them to your Benefits Contact or AskBenefits@nih.gov.
After an election is entered into myPay, it will be effective at the beginning of the next pay period, and it will take 1-2 pay periods before it is visible in myPay and on your Leave and Earnings Statement (LES). Only one regular TSP election and one TSP Catch-up election can be entered into myPay during a pay period.
The 2020 IRS limit for TSP Catch-up contributions is $6,500. See the topic in this newsletter on TSP Catch-up.