2018 Contribution Limit question

[rebel]

Since the annual contribution has increased from $18000 to $18500 for 2018 when do I submit my payroll change. I know if its 26 pay periods then I would increase to $712 on a Bi-Weekly pay schedule. I saw a calendar and it shows that it will have 27 pay periods for 2018. So I have two questions.

1. When do you submit the payroll change? Pay period 1 starts on Dec 10, 2017 - Dec 23, 2017. Is this the correct time to submit the increase to $712 or do you submit it during pay period 26 which would be between Nov 26 - Dec 9?

2. If 2018 has 27 pay periods do you adjust the bi weekly contribution to $686 to keep getting the 5% matching or is the 27th pay period a correction for the calendar only and no matching will be given in this extra pay period?

Thanks in advance for your time.

[Timber82]

where did you see the 27PP? That is a bit aggravating since a lot of my deductions are per pp

[fordest]

If you are currently maxing out, you can make it effective PP26 and it won't effect 2017 at all. You will contribute to the 18K limit no matter what you raise the PP26 contribution to. Then, on PP01 of 2018 you will begin the new contribution amount.

I checked two different places and I cannot find a calendar with 27 PP for 2018. The question is whether or not your agency's official Pay Date is in 2018 or 2019.

[rebel]

I am currently maxing out my 2017 TSP by deducting $693. So if I submit the increase during pay period 26 it should work out for 2018. Just kinda confusing since this is happening in 2017.

As far as where I saw the extra pay period it is listed on my agency website under payroll calendar. I work for the FAA. It has PP27 starting on Dec 9 and ending on Dec 22.

Does anyone know if the GOV matches the 5% in this situation on extra pay period 27?

[fordest]

Yes. The matching will occur in PP 27 as well. As long as you have room for at least 5% of your salary left under the contribution limit.

[Snapdragon]

I work in Dept of Interior. 2018 for us is 27 PPs! Jan 1 is halfway thru PP 2. PP 27 ends Dec 22.

Does it depend when TSP gets the money? My paycheck hits my account on Mondays, there are 27 payday Mondays. But if its Tuesday, there are only 26 paid Tuesdays. In summary: I have no idea what the right answer is to the original question.

[rebel]

I think I figured it out. It strictly goes by your agency pay periods. I was thinking 2018 IRS calendar year limits and that was confusing me. During my PP26 this year which occurs 11/26/17 - 12/09/17 I will max out 2017 annual contribution $18000. I will submit my new amount which will be $686 during the PP26 time frame. When PP01 starts on 12/10/17 my new deduction of $686 will be deducted towards the $18500 (2018). I hope that helps and I hope I am right. I guess it depends on what agency you work for if you will have 26 or 27 pay periods in 2018.

[fordest]

The best way to determine when your contributions will be posted is to check your transaction history on tsp.gov. That will tell you when to expect it. The year that the contribution gets applied is the year in which your official pay date falls. No matter when you actually get paid (which is slightly earlier for some of us.)

This means that PP 26 will actually be applied to 2018 for me. I will be raising my contribution amount effective PP 25.

In 2018, PP 26 will be applied in 2018 as well. Making 27 Official Pay Dates but only 26 Pay Periods. This might be why some agencies are saying there are 27 PPs in 2018.

[fordest]

Rebel. We have very different systems for Pay Periods. You will have to verify your official pay date, but I would guess it will be on Jan 2 due to the Jan 1 holiday falling the Monday after Payroll processes.

From tsp.gov:

TSP contributions are reported by pay date, which is established by the participant’s employing agency and represents the date employees receive payment for a particular pay period. The pay date determines the year for which contributions are applied to the IRS contribution limits, and may be different than the date on which contributions are actually received and posted to the account.

Edited: I think I understand how your agency is doing this and you will likly receive your first 2018 contribution from PP01, whereas mine will come from pp26.

[hmarkway]

Do you get paid on Mondays? Do they typically pay you on the Friday before if there's a holiday on the pay day or do they pay you on the day after? The only way I can see there being 27 pay periods is if your pay day falls on the Monday of the same week I get paid (see the calendar); however we always get paid early if pay day is a holiday... And if that's the case for your agency as well, even though your pay day is officially Jan 1, then you would be getting paid on Dec 29th, so there'd still technically be only 26 pay days in 2018. I would investigate to be sure. You could always change your last pay check to include more, if you find out later in the year that there's only 26 vs the 27 you planned on.

[LostNomad]

Input Dec 10 to Dec 23.

Regular: $712

Catch Up: $231

Catch up must be re-input every year.

[xencfw]

I don't understand why there isn't an option in mypay for just how much contribution you would want to make over the an entire year and let the system make sure it takes out enough per pay period to cover the requested yearly contribution. For people wanting to max their contributions its such a game with the pay periods and when the change is effective and then the risk of over contributing. Seems like there is a lot better solution from DFAS.

[Aitrus]

Woah, hold it right there, xencfw! You're using common sense. We in government service can't have any of that, now can we?

[LostNomad]

Woah, hold it right there, xencfw! You're using common sense. We in government service can't have any of that, now can we?

LOL.

[highseas]

Since the annual contribution has increased from $18000 to $18500 for 2018 when do I submit my payroll change. I know if its 26 pay periods then I would increase to $712 on a Bi-Weekly pay schedule. I saw a calendar and it shows that it will have 27 pay periods for 2018. So I have two questions.

1. When do you submit the payroll change? Pay period 1 starts on Dec 10, 2017 - Dec 23, 2017. Is this the correct time to submit the increase to $712 or do you submit it during pay period 26 which would be between Nov 26 - Dec 9?

2. If 2018 has 27 pay periods do you adjust the bi weekly contribution to $686 to keep getting the 5% matching or is the 27th pay period a correction for the calendar only and no matching will be given in this extra pay period?

Thanks in advance for your time.

Where does it say the limit is going to $18,500?