Public Law 108-469, which was signed into law on December 21, 2004, eliminates the Thrift Savings Plan open seasons and the restrictions on contribution elections which are tied to open seasons. The full article can be read on the TSP.gov Web site.
Thrift Savings Plan (TSP) is a voluntary retirement savings and investment plan. Contributions are deducted from a member's pay before taxes are computed. In addition, TSP earnings are tax-deferred.
Once enrolled there are only two options to withdraw money while in the service: Financial hardship and reaching age 59½ or older.
Members may enroll within 60 days if the following applies:
- Joining the NOAA Corps
After the initial 60-day period, there will be two "open seasons" from 15 April through 30 June and 15 October through 31 December. Open seasons will be eliminated on 1 July 2005 and changes can be made anytime.
At enrollment, a TSP-U-1 Election Form must be filled out. This form may be obtained through www.tsp.gov under Forms and Publications from the Uniformed Services section.
Fax the completed form to the Commissioned Payroll Unit (CPC11) at (785) 339-3790 or mail it to:
NOAA Corps Payroll Unit
P.O. Box 397
Topeka, Kansas 66601
TSP-U-3 Designation of Beneficiary Form must be mailed to the TSP Service office:
Thrift Savings Plan
National Finance Center
P.O. Box 61500
New Orleans, LA 70161-1500
TSP Questions:
Questions on enrollment, disenrollment, deductions or form completion, contact the Commissioned Payroll Unit (CPC11) via phone (785-339-3497).
Question on TSP investments, loans, and PINS, contact TSP Thrift Line via phone (504-255-8777).
TSP Catch-Up Contribution Program:
- Members age 50 or older are allowed to contribute an additional $2,000 to TSP in 2003 (beyond the normal $12,000 maximum).
- Catch-up program applies to members turning age 50 prior to the end of the calendar year.
- Members must be contributing the maximum contribution percentage (8%) in order to qualify for catch-up contributions.
- $3,000 Catch-up program ceiling increases to $4,000 in 2005, and $5,000 in 2006 & thereafter
- Catch-up contributions are on a pre-tax basis like other TSP contributions.
- Elections, election changes, and stops are allowed at any time beginning in the year the member turns age 50.
- Catch-up elections are not subject to the normal TSP open season rules.
- Catch-up elections are made on Form TSP-U-1-C. Please note, when completing Section II, Line 7 of the form that "Pay Period" is the amount to be deducted per month, not per payday.
