IRS Limit 401K

**James48843** · 01-01-2007, 05:59 AM

Note:

I don't think any deferred compensation (TSP cut) can be counted when calculating the "high three".

I read something some time ago that talked about maxing out TSP until your very last three years, because the high three only counts taxable income, and not any non-taxable TSP contribution. The article said you actually have to crunch the numbers in your own situation to see if it worked out better financially to max or not to max TSP during the final three years.

I don't know where I read that.

**mayday** · 01-01-2007, 08:55 AM

Originally Posted by James48843

Note:

I don't think any deferred compensation (TSP cut) can be counted when calculating the "high three".

I read something some time ago that talked about maxing out TSP until your very last three years, because the high three only counts taxable income, and not any non-taxable TSP contribution. The article said you actually have to crunch the numbers in your own situation to see if it worked out better financially to max or not to max TSP during the final three years.

I don't know where I read that.

If this is true its a rip off. I've got to look in to this.

**mayday** · 01-01-2007, 02:02 PM

Originally Posted by mayday

If this is true its a rip off. I've got to look in to this.

I always thought our base salary was used to arive at our high three retirement calculation. I have never read anything anywhere about what is talking about.

**grandma** · 01-01-2007, 02:59 PM

When my retirement was calculated they used the base; there was no consideration to the OT, nor to any deductions. They did not have that information in front of them. They had the current base and the dates of each raise; the information that we get the carbon: Notification of Personnel Action.

**Wheels** · 01-01-2007, 03:00 PM

Originally Posted by mayday

I always thought our base salary was used to arive at our high three retirement calculation. I have never read anything anywhere about what is talking about.

I believe James is mixing apples and oranges (or maybe alcohol and sleeping pills). Your contributions are not subtracted from your salary before determining your high 3.

**mayday** · 01-01-2007, 11:37 PM

Originally Posted by Wheels

I believe James is mixing apples and oranges (or maybe alcohol and sleeping pills). Your contributions are not subtracted from your salary before determining your high 3.

Thanks Wheels that eases my mind. I do'nt have to change strategies.