When to change contributions to max out in 2019

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SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

When to change contributions to max out in 2019

Post by SnareMV17 »

Hello all,

I thought I would posit this here before waiting to get an inadequate answer via HR or other sources. I currently make very large contributions to TSP as I aim to max out in 2018, but didn’t start toward that goal until June. My goal is to reach the $19,000 max in 2019 with even distributions throughout the year. I will only be 36 next year so won’t qualify for catch up. My question is, when do I make the contribution change to ensure that it will take effect in the proper pay period? We just started pay period 25 yesterday (Sunday, 11/11) in my agency.

Any guidance or experience would be appreciated!
"Get your money for nothin', and your chicks for free."

Following TSPCalc strategy #64902.

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fordest
Posts: 605
Joined: Wed Sep 26, 2012 3:48 pm

Re: When to change contributions to max out in 2019

Post by fordest »

Its going to be different for everybody. Mostly depending on which agency handles your payroll. For example I am only in PP 23. My changes take 24 hours to take effect so I will be making my changes while in PP 1 of 2019. You might need to wait for your answer from HR. Or find that TSP savvy person in your department.
100% in the daily system since August 2, 2017.
Following strategy (current pick) #88676. 2020 real life has been following #110838

genmenace
Posts: 5
Joined: Fri Nov 05, 2010 4:06 pm

Re: When to change contributions to max out in 2019

Post by genmenace »

Ok. I'm DOI. Paid bimonthly. When I make a contribution change in PP 23, it takes effect in PP 24. Every time!!! Now you will not see the effect till PP 25 when you actually get paid PP 24 monies.

This is what I do. I contribute 99% of my paycheck for about the first 4 PP of the year. Less on the 5th PP or so. Always making sure that I have ample monies left in the max limit (18,500) to be able to contribute no less than 5% of my income per PP (6-27) in order to get matching funds.

Maxed out in Sept. years ago and lost all matching funds for the rest of the year, OUCH!!
FYI. Catch up contributions DO NOT work/apply/count towards matching funds contributions. Don't make my mistake.

Live below your means, debt is the Evil American Dream, read "The Richest Man in Babylon", Debt makes us all indentured servants.

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mjedlin66
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Re: When to change contributions to max out in 2019

Post by mjedlin66 »

Based on my research with my own DFAS payroll, the deciding factor is pay date, not pay period dates.

So find the first pay date of 2019. Go back from there to determine which pay period is funding that pay date. Then set the contributions for that pay period by agency policy.

For me:
1st pay date is 1/11/2019.
That pay period is 12/23/18 - 1/5/2019
I need to make the change any time during the previous pay period. So make change between 12/9/18 - 12/22/18

Finally,
I am working on a tool now which will greatly simplify this mess. It will be out probably early December.
Owner/creator of TSPcalc.com - "Know your numbers"

SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

Re: When to change contributions to max out in 2019

Post by SnareMV17 »

Thank you, mjedlin66! You laid it out perfectly for me.
"Get your money for nothin', and your chicks for free."

Following TSPCalc strategy #64902.

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mjedlin66
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Joined: Wed Oct 02, 2013 7:51 pm

Re: When to change contributions to max out in 2019

Post by mjedlin66 »

fordest wrote:Its going to be different for everybody. Mostly depending on which agency handles your payroll. For example I am only in PP 23. My changes take 24 hours to take effect so I will be making my changes while in PP 1 of 2019. You might need to wait for your answer from HR. Or find that TSP savvy person in your department.
You can make changes to your contribution effective for the current pay period? What is your payroll agency? This information will be extremely helpful for my new contribution calculator.

Thanks
Matt
Owner/creator of TSPcalc.com - "Know your numbers"

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fordest
Posts: 605
Joined: Wed Sep 26, 2012 3:48 pm

Re: When to change contributions to max out in 2019

Post by fordest »

I get paid by NFC. As long as I make the changes before the last day of the PP it takes effect that PP. I guess they have enough time to process it in the time it takes to process the pay too? I'm certain this is certain for allotments and tax withholdings. I don't make contribution changes as often so I will have to verffy this for you Matt. I'll do it tomorrow when I go in to work.
100% in the daily system since August 2, 2017.
Following strategy (current pick) #88676. 2020 real life has been following #110838

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Amerks
Posts: 42
Joined: Sun Jan 12, 2014 10:21 am

Re: When to change contributions to max out in 2019

Post by Amerks »

Quick clarification question for calculating in which calendar year the contribution is credited toward...the date we are talking about is the EFT date and not the paper check date? For me my PP25 EFT is 12/31/18 while the paper check is 1/3/19. Thanks.

SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

Re: When to change contributions to max out in 2019

Post by SnareMV17 »

For tax purposes I believe it is the check date. You get paid in 2019 so it affects 2019’s numbers.
"Get your money for nothin', and your chicks for free."

Following TSPCalc strategy #64902.

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mjedlin66
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Re: When to change contributions to max out in 2019

Post by mjedlin66 »

Amerks wrote:Quick clarification question for calculating in which calendar year the contribution is credited toward...the date we are talking about is the EFT date and not the paper check date? For me my PP25 EFT is 12/31/18 while the paper check is 1/3/19. Thanks.
If I were you, I would check with your payroll office. And then report back, because we are curious.
Owner/creator of TSPcalc.com - "Know your numbers"

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Amerks
Posts: 42
Joined: Sun Jan 12, 2014 10:21 am

Re: When to change contributions to max out in 2019

Post by Amerks »

mjedlin66 wrote:
Amerks wrote:Quick clarification question for calculating in which calendar year the contribution is credited toward...the date we are talking about is the EFT date and not the paper check date? For me my PP25 EFT is 12/31/18 while the paper check is 1/3/19. Thanks.
If I were you, I would check with your payroll office. And then report back, because we are curious.
I am told it is the paper check date that dictates the year that the contribution counts toward as that is the official pay date.

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