Contributions to the TSP by uniformed service members in a combat zone are contributed to the TSP as tax-exempt, and accrue tax-deferred earnings. Members of the uniformed services who deploy to designated combat zones are subject to the combat zone tax exclusion, which allows tax-exempt income earned. Uniformed service members are permitted to make contributions from both basic pay as well as from incentive, special, or bonus pay, but are subject to the regular contribution limits. However, unlike the regular TSP contribution, this election does not automatically renew each year the employee must specifically make a new election each year. The catch-up contributions are tax-deferred and allow age eligible participants to defer up to $24,000 (for 2017) in their TSP account.
#CSV2QFX THRIFT SAVINGS PLAN CODE#
In addition, participants age 50 or older under FERS and CSRS, or uniformed services may also make “catch-up” contributions up to the Code limitation, which is $6,0. As of September 2015, new employees will be enrolled in the TSP with a 3% deduction from their gross pay being deposited into the age-appropriate Lifecycle Fund unless they make another choice. (Prior to 2006 the contribution was limited to a specified whole percentage of pay.) Once the contribution is selected it automatically renews each year at the same amount or percentage until the participant elects otherwise. The contribution for FERS and CSRS may be either a specific dollar amount per paycheck or a percentage of income (but the percentage must be a whole percentage fractional percentages are not allowed), uniformed service members elect a percentage of pay only. Contributing and Vesting Employee ContributionsĪll FERS and CSRS employees and members of the uniformed services may contribute up to the Internal Revenue Code limitation, which is $18,0.
Prior to June 22, 2009, new employees had to wait at least one year before receiving matching contributions (including Agency Automatic Contributions) after this date employees were eligible for automatic contributions from day one of employment, and are immediately eligible for matching contributions once the employee begins contributing to the TSP.ĬSRS employees and members of the uniformed services may join at any time. EligibilityįERS employees are eligible to join TSP immediately upon starting work and may join at any time thereafter.
The TSP is administered by the Federal Retirement Thrift Investment Board. It is also open to employees covered under the older Civil Service Retirement System (CSRS). The TSP is one of three components of the Federal Employees Retirement System (FERS the others being the FERS annuity and Social Security) and is designed to closely resemble the dynamics of both private sector 401(k) and Roth 401k (new Roth TSP implemented in May 2012) plans. As of December 31 2015, there were approximately 4.8 million participants, and nearly $458 billion in assets under management. The Thrift Savings Plan (TSP) is a defined contribution plan for United States civil service employees and retirees as well as for members of the uniformed services.
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