Thread: 2015 Contribution Limits

For those fortunate enough to be able to max out the contributions, here are some calculations and thoughts about how to adjust your payroll deductions.

You have to contribute an even dollar amount, at least in my agency.

18000/26=$692.31 per pay period.

$692*26=$17992 so you need $8 more to max it and be eligible for the $6k catch up contribution.

$693*26=$18,018. Past experience has shown that if I make the contribution $693 my agency will automatically adjust the last contribution to $675 making it an even $18k.

$6000/26=$230.77 per pay period

$230*26=$5980 so you will need $20 more to max it.

$231*26=$6006. Last contribution should be adjusted to $225.

It may take two to three pay periods for changes to be made so start checking in to this around 1 Dec. After the first of the year check the LES to make sure you don't need to make adjustments.

If you don't trust your agency to not over contribute you can adjust your allocation for one pay period to $700 for regular and $250 for catch up.

PO

Originally Posted by Frixxxx

You're thinking of COLA, promotions and step increases never stopped.

Well, promotions don't happen often at my Agency, especially when max'd out at my Pay grade ....

Interesting that your agency only allows even contributions. You can't make changes through the year if needed, example perhaps being you suddenly find you need more takehome for an emergency situtation? My agency, you can make changes to tsp contributions through the year, just have to submit the change request a pp or 2 ahead of time, we can specify which pp to have the change take effect, as long as its a pp that is not already being processed at NFC.

Originally Posted by uscfanhawaii

You thought $18K was a lot? Read on in the the article. It also says: "Taxpayers 50 years old and over can contribute up to $24,000"!! And if you want to put it into your Roth TSP, that is $37K gross at 35% tax rate. I don't know why they even bother putting a 'cap' on it, when so few people can even reach the cap!

If I wanted to put bulk of contributions into new Roth TSP, I'd have quite a bit less takehome than I do now. which would hurt bad when comes time to do home repairs, save for next vehicle, things like that. right now the tax deferral means I don't get hit as hard on income tax witholding. bigger tax bite when all those contributions are not tax deferred=less takehome.

so I'll just keep working on maxing contribs to tax-deferred version of tsp, and save what I can additionally to put into Roth outside of tsp. By not putting into Roth tsp, I have more (potentially) to put into Roth outside of tsp because I have a little more takehome to put aside into Roth outside of tsp (if its not needed for replacement vehicle, home repairs, etc).

Originally Posted by Frixxxx

Here's my reference chart for all you savers/investors (2015)!

Attachment 30803

That's really helpful instead of me just breaking out a calculator each time I'm curious to see what I need to put in to stay on track OR to get the most out of my agency matching contributions for the year. Thanks for the share!

Originally Posted by alevin

Interesting that your agency only allows even contributions. You can't make changes through the year if needed, example perhaps being you suddenly find you need more takehome for an emergency situtation? My agency, you can make changes to tsp contributions through the year, just have to submit the change request a pp or 2 ahead of time, we can specify which pp to have the change take effect, as long as its a pp that is not already being processed at NFC.

Not explaining it well. If you make the contribution as a dollar amount it is even dollars only. If you make it a percentage it may not be an even dollar amount. Percentages must be in whole numbers. Trying to max out your contribution using percentages requires first figuring out how much your basic rate will be (hourly rate x 2049.xxx hours?) and will assume you never get a temporary rate for any reason. This is just easier for me. Set it and forget it.

I can make as many changes as I want during the year providing I do them from work. Personnel apps are no longer available outside the .gov domain. Very curious where you read that I cannot make changes during the year from my post. I reread it and cannot see that.

Changing the subject back to 2015 Contribution Limits from Re: "$ The Shark Tank" since many of us have no access to that tank.

PO

For those fortunate enough to be able to max out their contributions and want to contribute an equal amount every payday, be aware that there are 27 paydays in 2015 if you are on a pay schedule like mine. I just got this from BEST:

Calendar Year 2015 Regular TSP Contribution Amount Correction
------------------------------------------------------------------------
Response Via Email(myPers - Total Force Service Center) - 12/03/2014 03:02 PM
You are receiving this message because our records indicate you have made a regular Thrift Savings Plan (TSP) election, effective 14 December 2014, in the amount of $693.00. The Benefits and Entitlements Service Team (BEST) originally published guidance that stated by electing this amount each pay period, it would ensure you received full matching contributions throughout calendar year 2015. Unfortunately, the contribution amount you were advised to elect was incorrect as it only accounted for 26 pay days in calendar year 2015. There are actually 27 pay days in 2015; therefore, the correct contribution amount to reach the $18,000 elective deferral limit is $667.00 per pay period. As such, BEST is correcting the 2015 TSP contribution amount to $667.00 per pay period, which ensures you do not reach the $18,000 elective deferral limit prematurely. This correction will be processed by BEST and does not require any action on your part.

In the event that you do not wish to have the contribution amounts corrected, or if you have any questions or concerns, you may contact BEST at afpc.dpieb@us.af.mil. Again, if you are in agreement with the corrective action of your TSP election, you are not required to take any additional action. The election will still take effect on 14 December 2014 and will reflect on your 2 Jan 2015 Leave and Earnings Statement (LES).

Thank you.

Benefits & Entitlements Service Team

You will have to make your contribution adjustment this pay period to have it take affect the first payday in 2015.

Nice that BEST does the calculations for you and makes the adjustment for you automatically. My outfit doesn't do that, I'll have to do the refiguring myself, after the first pp goes into effect. I already submitted for 26pp, missed the part about 27 at the time. oh well. I'll get it fixed myself. nobody will do it for me, even if they know I miscalculated. I'll get it recalculated and resubmitted as soon as the program lets me, but will have to take into account the first pp already having taken out based on 26.

Yeah, that happened to me last year as I waited too long to change my allocation. I keep forgetting that there is a difference between the pay period and the payday. So I had to figure it with 1 payday at the old allocation and 25 at the new one. It worked.

Looking at the 2015 schedule, I thing the initial confusion was on the Friday, January 1, 2016 payday. It's a holiday so we get it early on Thursday which is actually the previous year giving us 27 paydays in 2015.

Good catch Cactus. It doesn't happen too often that some of us have 27 paydays in a calendar year. As for me my first payday in 2016 will be 7 JAN so this does not apply. Everyone will need to get hold of a 2015 payroll calendar for their own agency to verify their pay days.

A retired member mentioned elsewhere we may be spending too much time on this effort of making sure we get all the matching. According to what what I have read about the catch up contributions, you only have to be "on track" to max the regular contribution to qualify. I wonder what that means? I would rather make sure I max the regular contribution so the catch up never comes in to question.

Regards, PO

27 Pay Periods spreadsheet

2015-quickreference-tsp-contributions-27PP.xls

For those who need the estimates.