- I'm finding that I wish I could see this hidden category. Occasionally I see a page that should have this category, but I need to view the source to see if the category has been added to the page pr mpt. Moreover, I think it would actually be educational for readers to see that a page has information that can change from one year to the next. It gets people in the mindset that some figures can and do change annually. But I don't feel that strongly about it and
Pages under development:
- User:Hoppy08520/Employer matching contributions
- User:Hoppy08520/TSP role in a portfolio
- User:Hoppy08520/Prioritizing investments
- User:Hoppy08520/Prioritizing investments (update)
Merge duplicative parts in AA in Multiple Accounts
- Considerations for transferring in to TSP
- Comparison of TSP with 401(k) and similar DC plans
- Distribution considerations
Maximizing employer match
If your employer provides a matching contribution, you will want to maximize that amount. Take into account the following considerations:
- Some employers match employee contributions only as they are made from payroll, and do not offer "make up" or "true up" contributions; one such employer is the Federal Thrift Savings Plan. This can cause an employee to lose out on some matching funds if:
- The employee contributes the IRS maximum before the end of the year.
- The employee suspends contributions for any period of time.
- If the employer does offer true up contributions, then any shortfall in matching funds because of the scenarios above, will be added to the employee's matching funds at the end of the year to "true up" the employer's match. If your employer does offer to true up contributions, then many of the details in this section do not concern you as your employer will make sure you gain the maximum match.
Considerations for those who want to maximize their contribution to the IRS maximum, and earn the maximum match available:
- Ideally, if you plan to contribute the IRS maximum, you should contribute a fixed amount per pay period as opposed to a percentage. For example, supposing you are paid two times per month and the IRS maximum is $18,000, then you should elect to contribute $750.00 per pay period ($18,000 / 24).
- Many plans do not allow participants to specify a fixed contribution per pay period, but only offer a percentage contribution based on salary. In this case, calculate what percentage it would take to maximize over the course of the year. For example, if you earn $100,000 per year, and are paid twice per month, and the IRS maximum is $18,000, then, you would choose 18.0%.
- If you have a variable salary, or if you get a raise or salary reduction, then you'll need to regularly recompute your contribution amounts to make sure you wind up contributing the maximum amount while also earning the highest matching amount you can.