Thread: civilian bonus

Originally Posted by offtrack

Correct if I am wrong but civilian bonuses are not tapped by percentage contribution. Any work around that would allow the bonus to be saved? All I can think of is maxing out yearly contribution through specific dollar amount from regular wages but I don't think there is enough time left in the year for my daughter to take advantage of this. I don't think a separate check contribution can be made under any purpose.

You can't. I checked into this, but the finance office didn't have any clue. TSP only takes out from your basic pay. It doesn't even take out of overtime pay. The only way to do this is to go through your system that allows you to change the percentage or dollar amount per paycheck. Then when you have contributed your bonus amount, switch it back. I usually take my last paycheck of the year and dump it 100% for the tax breaks.

The military TSP program allows you to specify what types of pay can be tapped for contribution.

yes but problem for her is that she only hired in Oct and hasn't many pay periods left. Her bonus will tax at 28% this year if she can't defer. Plus TSP is dragging butt in getting her an account number so she can adjust her contribution. It would be nice to lobby for the same inclusion of bonuses and overtime as long as we don't exceed the IRS limit on donation. Especially since TSP is spending all that money on upgading equipment.