TSP matching calculations

[Scarfinger]

Assuming I am as dumb as a rock...

using Bank One calculator for 401K

I am trying to do some TSP estimations. Most the calculators have "employer match" and "employer match ends" sections.

Do I use 100% "employer match" with 5% "employer ends"

Or does this apply:

The first 3% is matched dollar-for-dollar by your agency; the next 2% is matched at 50 cents on the dollar. This means that when you contribute 5% of your basic pay, your agency contributes another 4% of your basic pay to your TSP account.

making it 4% for "employer ends" box?

Thanks

[evilanne]

Everyone automatically get 1% so if you are only putting in 5% you get 5%. If you are putting in less it would be less but it could vary depending on what you put in. If you are putting in more it would be at 5%.

[Scarfinger]

Everyone automatically get 1% so if you are only putting in 5% you get 5%. If you are putting in less it would be less but it could vary depending on what you put in. If you are putting in more it would be at 5%.

I am putting 11% in.

So are you saying that the employer match is 100% of the 5% I put in?

Thanks.

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I think I found my answer:

important for FERS employees. If you reach the IRS elective deferral limit before the end of the year, your contributions and Agency Matching Contributions must stop for the remainder of the year.

So as long as I don't reach my maximum contribution limit. The match is at 100% as far as I can tell.

[evilanne]

Yes, Match is 100% of the 5%, 0% of your additional 6%

That is why you want to make sure that you don't reach max early in the year...if you do, you will still get the 1% automatic but lose out on the 4% additional match.

[mjedlin66]

Like evilanne said, they match 100% of the first 5% (if you are putting in 5% or more). So inout 100% for employer match, and 5% employer match ends.

[winsprint]

Agency Contribution Chart

[EasyEddie]

Good info. Thanks.

[CODE4]

Yes you should be putting in at least 5%.

[Skivvy9]

Yes you should be putting in at least 5%.

Must do.

[tegsr94]

Assuming I am as dumb as a rock...

using Bank One calculator for 401K

I am trying to do some TSP estimations. Most the calculators have "employer match" and "employer match ends" sections.

Do I use 100% "employer match" with 5% "employer ends"

Or does this apply:

The first 3% is matched dollar-for-dollar by your agency; the next 2% is matched at 50 cents on the dollar. This means that when you contribute 5% of your basic pay, your agency contributes another 4% of your basic pay to your TSP account.

making it 4% for "employer ends" box?

Thanks

TSP.gov actually has some decent calculators set up that all ready take into account the government match. It makes it slightly easier than using a generic 401k calculator.

[sunny]

Evilanne, What do you mean by lose on 4% additional match if max is reached early in year?

[evilanne]

If you put $1000/pay period into TSP you would get the 5% match for the first 18 pay periods & you would reach the max. In pay period 19, your contributions would stop because you can't exceed $18K max, but you would still get the 1% TSP automatic agency contribution for PP 19 to 26.