Hi Scott- I believe you can if you can afford to. For instance, if you were retiring in March of 2019, you can accelerate your contributions up to and including the IRS limit for 2019. However, a word of caution: if you accelerate all your contributions early in the year and don't retire until later in the year or not at all, then you would not be getting any employer match for the remainder of the year.The reason why is because your employer match does not accelerate also, but remains at a max of 5% of salary (provided that you at least contribute 5%) divided by the number of paychecks you receive a year. (I believe that that is the formula but always check with your personnel department before you move forward).
On Thursday, November 15, 2018 10:06 AM, "Scott Lorick scottlorick@yahoo.com [TSP_Strategy]" <TSP_Strategy@yahoogroups.com> wrote:
That's brings up an interesting point could you actually put all of your paycheck into TSP if your were retiring after Jan 1st.
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On Thursday, November 15, 2018, 7:59 AM, Richard Lopez lopezesquire@sbcglobal.net [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
Congratulations on your imminent retirement! I may be wrong on this but at first blush I don't believe that you can make that contribution for 2019 if you are not on the payroll on Jan 1st. You would have to be an actively employed employee of an employer to get the deduction under IRS regs.. I don't believe that NFC nor TSP would execute such a request once they realize that you retired on 12/31/18. If you wait until Jan 1 2019 then I believe you could. You should check with your personnel office and/or TSP to check this out. However, if you are even concerned this late in your retirement plans that you "may" need the money to pay bills then, if it were me, I would not even consider it because it could be at least a month or more after your last paycheck before you get any money from unused leave or your first annuity check. Best of luck with whatever you decide to do and happy trails!
"scsi_guru@yahoo.com [TSP_Strategy]" <TSP_Strategy@yahoogroups..com> wrote:
I plan to retire on 12/31/18. I'm on the NFC payroll system and the 2019 tax year begins in 12/22/18 which will give me around a half pay period on the rolls. I guess I can contribute most of my paycheck to TSP but that would severely limit my last paycheck and I "may" need that to pay some bills. Thoughts? Suggestions?
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Posted by: Richard Lopez <lopezesquire@sbcglobal.net>
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