Catch-up contributions will soon get easier
Starting in January 2021, we will make the catch-up process easier: if you're turning 50 or older, you'll no longer need to make two separate elections each year in order to take advantage of catch-up contributions.
Instead, your contributions will automatically count toward the IRS catch-up limit if you meet the elective deferral limit and keep saving. If you're eligible for an agency or service match, contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of your salary. Your election will carry over each year unless you submit a new election.
For 2020 catch-up contributions, you do still need to complete the current process and make a separate election. Check current contribution limits to make sure you're on track this year.
Good Morning All,
So, I have read numerous versions of the new catchup contribution rule going into effect.
I have no problem with it...In fact, I think it is a great idea....
But I am having a hard time wrapping my head around the matching portion of it...
In the past, I divided the max contributions by the number of pay periods to ensure I was getting the full benefit of the match.
I then setup the Catch Up separately which had no bearing on matching....
Now I am trying to decide how to setup my bi weekly allocation next year which will include regular and catch so as not to tap out my matching too early.....
is it as simple as (19500+6500)/pay periods? Will that still ensure I get the full match???
Sorry if this was discussed before.....
thx
Bama
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