Tax
Year 2008 will begin on December 23, 2007 (in pay period 26) and will end on
December 20, 2008 (pay period 25). Plan to use Employee Express (EEX)
during the week of December 10 - 14, 2007, to make changes to the amount of
your TSP contribution for the coming tax year. (You can make changes
later during the same pay period, but it’s recommended that you access EEX the
first week of the pay period.)
- For Tax Year
2008 the IRS elective deferral limit will
be $15,500. If you’re a CSRS or FERS employee, this is the maximum amount
you’re eligible to contribute to TSP and/or another qualified employer
tax-deferred retirement plan.
- If you’re in
FERS, you could spread your contributions
over the full 26 pay periods to maximize your Agency Matching
Contributions. If you reach the IRS limit of $15,500 too soon, your own
contributions will stop and so will the matching contributions. You
receive Agency Matching Contributions only on the first 5% of your basic pay
that you contribute each pay period.
- Decide how much to
contribute each pay period by using the TSP
Calculator.Go to the bottom of the webpage and
click on the start button. There will be 26 pay periods in Tax Year
2008.
- Use
EEX to specify the amount of your contribution to TSP. You may also call EEX on 1-800-414-5272 and use the Interactive Voice Response System
Thrift
Savings Plan Over 50 Catch-Up Contributions
If you’re age 50 or older and you’re
contributing the maximum amount allowed by IRS ($15,500), you may elect to contribute an additional
$5,000 to your TSP account for Tax Year 2008. Use EEX to make
Catch-Up Contributions.