Question from a uniformed services guy. I'm not sure if this applies to the civilian side as well.
We obviously get paid on the 1st and 15th. So, when a contribution is applied Jan 1 2015, that contribution technically came from December 2014 pay. Is that money counted toward the 2015 or 2014 tax year?
Thanks for the input!
That and as far as I know, the December 2014 contribution hit when it was supposed to...in December. The January contribution was jacked up for some reason. Such that the TSP website will show you had two contributions in February (February 9th and February 26th - if you're active duty)
I don't think it matters one way or the other unless you're contributing MORE than the max allowable yearly contribution. Say you max out your yearly contribution in November...the TSP just won't accept your December contribution (from what the TSP told me).
Interesting question. I would think that since it did not matter that you earned the money in 2014, the fact that you got paid in 2015 is when the income will be recorded then the same will go for the TSP contribution.
You might check old pay statements to verify. Your 1 January 2014 paycheck should have been recorded in 2014 even though you earned it in 2013.
I remember one year getting 3 paychecks for December and was not happy with the extra income that year since I was affected by the minimum alternate tax that year.
How's the chair flying going?
And yes TSPsmart. Chairflying often! Practice makes perfect or close to it...