SPILLOVER METHOD FOR CATCH-UP CONTRIBUTIONS TO THE THRIFT SAVINGS PLAN - UPDATE
Spillover Method for Catch-Up Contributions to the Thrift Savings Plan - Update
DATE & TIME 10/16 FRI
PROGRAM Spillover Method for Catch-Up Contributions to the Thrift Savings Plan - Update
EVENT INFO

 

Spillover Method for Catch-Up Contributions to the Thrift Savings Plan - UPDATE:

Beginning January 1, 2021, the Federal Retirement Thrift Investment Board (FRTIB) will implement a new method for catch-up contributions called the “spillover” method. (Participants will continue using the TSP’s current catch-up program through the end of 2020.) Spillover will apply to all active civilian and uniformed services members turning age 50 or older. It will help simplify our catch-up program for both participants and agencies or services.

 

How Spillover Works:

Under the prior catch-up program, TSP participants had to make a separate affirmative catch-up election every year by submitting Form TSP-1-C, Catch-Up Contribution Election (Form TSP-U-1-C for uniformed services members) or electing to make catch-up contributions through their electronic payroll systems. Payroll offices then submitted catch-up contributions to the TSP on special payroll records indicating that the contributions were catch-up contributions.

  

Starting January 1, 2021, the TSP will no longer use Form TSP-1-C, TSP-U-1-C, or the special payroll records that designate contributions as catch-up. GET DETAILS HERE: Bulletin 20-1.https://www.tsp.gov/bulletins/20-1/

 

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