Thread: TSP Contribution limit going up for 2012

Started planning for 2012 Investment year ($17,000 Max) and have provided this spreadsheet to show percentage numbers against pay periods. I hope this helps in making decisions for your future.

I defaulted at 4% because most investors here are contributing for the match level. Anyone can adjust to their levels by manipulating the sheet. I hold no copyright on math.

I personally will adjust my dollar amount to $653.84 per pay period to ensure I recieve the max from Uncle Sam.

$653.84 * 26 = $16,999.84

Good Luck All!

Originally Posted by Frixxxx

Started planning for 2012 Investment year ($17,000 Max) and have provided this spreadsheet to show percentage numbers against pay periods. I hope this helps in making decisions for your future.

I defaulted at 4% because most investors here are contributing for the match level. Anyone can adjust to their levels by manipulating the sheet. I hold no copyright on math.

I personally will adjust my dollar amount to $653.84 per pay period to ensure I recieve the max from Uncle Sam.

$653.84 * 26 = $16,999.84

Good Luck All!

Now if the FRTIB would increase our IFT's it would be a "win/win".

Originally Posted by Frixxxx

and have provided this spreadsheet to show percentage numbers against pay periods. I hope this helps in making decisions for your future.

+1 ... thanks!

Correction....EBIS only allows whole numbers for contributions.

$653 per pay period * 26 = $16,978

Great file, thanks!

Incredible to think that I could max out my contributions and still have a higher salary at that point then I did two years ago.
Why did I move to a more expensive place?

Question 1: Does the max of $17,000 apply to anyone with a TSP account, or is there eligibility requirements?
Question 2: I currently put in 15%, so would I change it to say 20%, or do I have to enter in an actual dollar amount into EBIS if I choose to put in anything above 15%?
Question 3: Does the catch up plan mean you can put in a total of $22,500 ($17,000 + $5,500)?

Thanks,
Nate

Originally Posted by KneednDough

Question 1: Does the max of $17,000 apply to anyone with a TSP account, or is there eligibility requirements?
Question 2: I currently put in 15%, so would I change it to say 20%, or do I have to enter in an actual dollar amount into EBIS if I choose to put in anything above 15%?
Question 3: Does the catch up plan mean you can put in a total of $22,500 ($17,000 + $5,500)?

Thanks,
Nate

Question 1: IRS limits for 401K, 401G, 507, 403B must be a qualified investment for tax deferment.
Question 2: Either/OR it reads funny but if you select percentage and type in 20%, then it is calculated out of your pay. If you do dollar amount, you specify the amount. I only provide the spreadsheet to show what the dollar amount equivalence comes out to for those not savvy with math!
Question 3: Catch-up means that!
From www.tsp.gov :
Catch-Up Contributions

You can begin making catch-up contributions at any time beginning in the year you turn 50. Catch-up contributions are also deducted from your pay before taxes are withheld. To be eligible to make catch-up contributions, you must expect to contribute the maximum amount allowed of regular employee contributions for the year to the TSP or to an equivalent tax-deferred employer plan, such as a private sector 401(k) or nonprofit 403(b) employer plan.

Originally Posted by SteelSaving

Great file, thanks!

Incredible to think that I could max out my contributions and still have a higher salary at that point then I did two years ago.
Why did I move to a more expensive place?

You're in Kansas....How expensive can it be?

So in regards to question 1, if I contributed more than 15% (only 34 years old, so no catch up contributions) would I be penalized come tax time at the end of the year?

Thanks for your input.

Originally Posted by KneednDough

So in regards to question 1, if I contributed more than 15% (only 34 years old, so no catch up contributions) would I be penalized come tax time at the end of the year?

Thanks for your input.

No, you're max is $17,000. The 15% number you hear all the time is the employer percentage (401K). For gov't employees(401g or equivalent), they allow up to $17K. I think the confusion is how the private sector talks about 401K.

Clearly from www.tsp.gov :
https://www.tsp.gov/planparticipatio...onLimits.shtml
Shows government employee limits accepted.

Originally Posted by Frixxxx

You're in Kansas....How expensive can it be?

I won't complain about it comparing it to other locations ($895.00/month 3bdrm)
But I was happier with $500/month for a 1 bdrm.

Having a girlfriend is expensive.