making over 50 catch-up contribution from annual leave lump sum.

[dave54]

I am retiring on Jan 03, 2005 and wonder if it is possible to use my annual leave lump sum payment to complete the balance of the 2005 catch-up contribution of $4,000.



Any suggestions?

[Spaf]

Dave - I'll retire in 06. My TSP is set to be transfered to a IRA. Any windfall $ i.e. leave, goes into my emergency funds.

Good luck in your retirement! :)

[dave54]

I've got enough cash on hand for liquidity. I want to maximize my TSP balance on the date of transfer.



I'm rolling it into an IRA and setting up a 72t withdrawal plan.

[dave54]

I found the answer, although not what I was looking for.



I had my personnel folks research it, and in a nutshell it cannot be done. Although the final lump sum amount is added to your final salary check, it is processed differently and the TSP payroll deductions cannot be taken out of it.:( At least at my agency.



As an alternative, I will change my catch up amount to be deducted from my last check to a large sum, say $1200 (I'll have to figure the exact amount), so I will have little to no take home pay with myfinal paycheck, and use my lump sum check as 'take home pay' until the annuity starts.



Since I am rolling the TSP into an IRA I can simply make a full 2005 IRA contribution with the balance of the lump sum. Then I will start the 72t withdrawals.

[tsptalk]

Thanks for the follow up Dave, and welcome!