Form Tsp-1-C - Catch-Up Contribution Election - Thrift Savings Plan (Page 2 of 2) in pdf

TSP-1-C, INFORMATION AND INSTRUCTIONS

GENERAL

Catch-up contributions are in addition to your regular TSP contributions. Therefore, if you are not already contribut-

INFORMATION

ing the maximum amount allowed by the Internal Revenue Code (IRC) through your regular TSP contributions or by

contributing to an equivalent employer plan (e.g., a 401(k) plan), you must elect to contribute the maximum amount

before you are eligible to make catch-up contributions. The IRC annual elective deferral limit for 2015 and 2016 is

$18,000. Your catch-up election will not affect your regular TSP contributions.

You may start, stop, or change your catch-up contributions at any time. Your election will stay in effect subject to the

conditions in Section II below. You must make a new election for each calendar year.

You do not receive matching contributions from your agency for any catch-up contributions.

Your catch-up contribution election will be effective no later than the first full pay period after your agency receives

it. Contributions will be invested according to your most recent contribution allocation on file. If you wish to change

your contribution allocation, you may do so on the TSP website at tsp.gov, or the ThriftLine at 1-TSP-YOU-FRST

(1-877-968-3778; outside the U.S. and Canada, call 404-233-4400).

SECTION I

Complete all items in this section.

SECTION II

Your contribution election. You can elect to make traditional (pre-tax) and Roth (after-tax) catch-up contributions

simultaneously. Whatever you enter in this section will cancel all previous elections; therefore, be sure to indicate

Your choice will

exactly what amounts you want to contribute, even if part of your election has not changed. Traditional contribu-

cancel all previous

tions come out of your pay before income taxes are calculated; you pay income taxes on these contributions and

elections.

their earnings when you withdraw them. Roth contributions are made from your pay after taxes. Withdrawals of

Roth contributions are tax-free. The earnings associated with these contributions are also tax-free, but only if 5

years have passed since January 1 of the calendar year in which you made your first Roth contribution, and you

have reached age 59 ½, have a permanent disability, or have died.

Contribution limits. The Internal Revenue Code (IRC) limit for catch-up contributions is $6,000 in 2015 and 2016.

The total of your traditional and Roth catch-up contributions cannot exceed this limit. IRC limits may be adjusted

annually for inflation. Check the TSP website, tsp.gov, to be sure that you have the most up-to-date limit amount

(and the most recent version of this form).

Deductions will be made from your basic pay in the dollar amount you indicate. However:

(1)

Catch-up contributions will stop when you have reached the maximum allowable dollar amount for the

calendar year.

(2)

The catch-up contribution amount you specified cannot exceed the amount of your pay after all other

required deductions have been made. (Required deductions include regular TSP contributions and TSP

loan payments.)

Your catch-up contributions will not continue into the next calendar year.

(3)

You are not eligible to make catch-up contributions if you are in nonpay status or if you are ineligible to make TSP

contributions because you have made a financial hardship in-service withdrawal within the last 6 months. If you have

elected to make catch-up contributions and you subsequently enter a noncontribution period, deductions will stop.

Contributions will not restart automatically. You must submit a new election when your noncontribution period ends.

You may stop your catch-up contributions at any time by submitting a new Form TSP-1-C to your agency indicating

that you want your election to stop. (See Section III.)

You must sign this section. If you do not, your request to start or change your catch-up contributions will be

rejected.

SECTION III

If you choose to stop all, or just one type, of your catch-up contributions, you must complete and sign this section.

Your election should be effective the first pay period after your agency receives it. You can restart your catch-up

contributions at any time, subject to the conditions above. Do not complete this section if you have completed

Section II. Your election in Section II cancels your previous election.

The Receipt Date (Item 13) is the date that a properly completed form is received by the agency personnel office.

SECTION IV

If the form has not been properly completed, it should be returned to the employee.

(To be completed

by personnel or

The Effective Date (Item 14) must be no later than the first full pay period after receipt of a properly completed form.

benefits office)

You should provide the participant with a copy of this completed election form.

Form TSP-1-C (1/2016)

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Form Tsp-1-C - Catch-Up Contribution Election - Thrift Savings Plan Page 2

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