Matching Contributions: TSP
TSP and Matching Contributions
How are federal employee Thrift Savings Plan (TSP) contributions matched? This is a question that showed up recently in our inquiry/comments in-box.
Federal and Postal employees covered under the (FERS) can receive matching funds for up to 5% of basic pay or salary. If an employee contributes 5% of the basic pay earnings each pay period during the course of a year, those funds will be matched..
The TSP matching is achieved dollar-for-dollar on the first 3% of basic pay and 50 cents on-the-dollar for the remaining 2% of the basic pay earnings. When choosing your TSP contribution amount make sure the amount is based on criteria that will maximize the benefits you are eligible to receive via TSP.
Check with your Human Resources Office (Postal employees can check their on LiteBlue or through PostalEase to be absolutely certain your TSP contributions are such that they will be spread out over 26 pay periods in order to get the maximum contributions match. You may also use the TSP Deferral Calculator at tsp.gov to determine the appropriate TSP contribution amount that will give you the 26 pay period scenario you desire.
P.S. Always Remember to Share What you Know.
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