Question: If i start a Roth TSP, can I call it my catch up contribution even though I

[GrimJack]

I am getting ready to start putting some TSP contributions to a Roth. Since I am a seasonal I do not max out my traditional contributions (I currently contribute about 1200 per month - actually I contribute $570 every 2 weeks). Some years they do not furlough me at all - with raises and my step, I could go over my max annual limit so it would really make it so I do not have to watch my pay stub. I do not have a lot for retirement, just over 130k. I will probably inherit some money but we are a ling-lived clan - both grandfathers lived over 90 and a great gmother lived to 104 so any inheritance is years away (and not anything to depend on).

My worst investment was blowing through almost 100k that I received in 10k lumps for xmas (as part of dad's attempt to distribute some of his money early). We grew up poor but dad received stocks from a couple relatives for birthdays, holidays, and so on. Not much, just 10 or so shares but the company became Smith Klein Glaxo and the shares were given over a 40 year period. After dad passed mom stopped the distribution - I have a niece that kept asking for 'the gift' early and really pissed mom off. The niece even tried asking for her share of the inheritance early - what a maroon.

[Like2Plan]

I am getting ready to start putting some TSP contributions to a Roth. Since I am a seasonal I do not max out my traditional contributions (I currently contribute about 1200 per month - actually I contribute $570 every 2 weeks). Some years they do not furlough me at all - with raises and my step, I could go over my max annual limit so it would really make it so I do not have to watch my pay stub.

Do you have more than 1 401K and you are worried about going over the limit? The TSP will stop contributions automatically if you have reached the annual limit, so if you just have the TSP you won't go over. But, another concern is if you are getting a match (no contribution= no match).
I am assuming that you are making some combination traditional and some roth contributions into your TSP account

[GrimJack]

I am just starting a Roth in my TSP (I have Roth and regular IRAs with Vanguard) the question concerns starting catch-up contributions before I max out regular contributions - I guess I will try it and see if it goes through.

Thanks for the reply.

[kork13]

I am just starting a Roth in my TSP (I have Roth and regular IRAs with Vanguard) the question concerns starting catch-up contributions before I max out regular contributions - I guess I will try it and see if it goes through.

My understanding is that catch-up contributions are treated no differently than normal contributions in any way whatsoever. It's basically just that you have a higher-than-normal contribution limit. So instead of being limited to $18k in contributions, $24k is your contribution limit.

[Like2Plan]

It has be a few years since I have done this election, but IIRC it was a separate sign up in employee express (civilian)- (Otherwise if it was all one big pot of money, the way they have the match set up--you could max out your regular contributions before the end of the year and not receive a match when you were doing your catch up)

Here is a link to a bulletin https://www.tsp.gov/PDF/bulletins/16-02.html

"Catch-Up Contributions Limit (IRC Section 414(v))

The IRC § 414(v) catch-up contribution limit for 2017 is $6,000. Participants who will make contributions to the TSP (or certain other employer-sponsored plans) up to the elective deferral limit, and who will be age 50 or older by the end of 2017, may also make a catch-up contribution election to contribute additional pay to their TSP accounts. These contributions may be traditional (tax-deferred) and/or Roth, and do not count toward the elective deferral limit. Eligible participants elect a whole dollar amount from their basic pay, and a new election must be made each year. The combined total of traditional (tax-deferred) and Roth catch-up contributions made during the calendar year cannot exceed the catch-up contribution limit.

Age-eligible participants who contribute the maximum amount of contributions allowed under the elective deferral limit and make catch-up contributions have the opportunity to contribute up to $24,000 (combined total of traditional (tax-deferred) and Roth contributions) in 2017 to their TSP accounts."

[Like2Plan]

So, again, it has been a while since I've done this, but I looked at one of my pay statements from 2010. I maxed out my TSP catch-up in pay period#24 and catch-up deductions were cut off for the rest of the year. The regular TSP contributions continued through PP 26. (Is this what you were asking?)

[GrimJack]

So, again, it has been a while since I've done this, but I looked at one of my pay statements from 2010. I maxed out my TSP catch-up in pay period#24 and catch-up deductions were cut off for the rest of the year. The regular TSP contributions continued through PP 26. (Is this what you were asking?)

I think it answers the question! It is 2 separate contribution streams that are independent of each other.

Thank you

and thanks to all who answered - I am going to start soonest (but I might be furloughed soon.