All eligible employees may begin making contributions to TSP immediately. As of August 1, 2010, enrollment in TSP is automatic for newly hired Federal civilian employees. The government automatically deducts 3% from each bi-weekly paycheck and places this in the G Fund. The employee must specifically request a change in this status.
All FERS employees automatically receive a 1% contribution of the employee’s basic pay from the agency. The agency will make matching contributions of up to 5%.
CSRS employees will not receive agency contributions.
Maximum contributions are determined by the IRS. The current Elective Deferral Limit is $16,500. Employees may contribute up to this limit.
Catch-up contributions are supplemental contributions made via payroll deduction by participants who are age 50 and older who are contributing the maximum amount. This year $6,500 is the maximum amount that one can contribute to “catch-up.”