What is the percentage of contribution that I can elect?
Military Members: The Thrift Savings Program provides an opportunity to invest in your future. You have the opportunity to elect 100% of resulting pay which is gross basic pay less mandatory deductions and TSP loan payments. Military members can also contribute from 1% to 100% of any incentive pay; special pay or bonus pay if they elect to contribute to basic pay. Choose your TSP election percentage wisely and remember to consider your other monthly obligations. You should carefully calculate the percentage of basic pay allocated to TSP per month keeping in mind the total TSP contribution amount for 2011 is $16,500 deferred and up to $49,000 total of exempt and deferred if you have been deployed to a combat zone. Also consider all current deductions such as; Social Security and Medicare tax (i.e., 5.65% of basic pay, but due to The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, it is 5.65% for calendar year 2011); garnishments; alimony; child support;
Related Questions
- Should Simple IRA elective contribution percentage(and company match 3%) be calculated from initial gross salary of paycheck?
- Are the contribution rates our organization agreed to a percentage of the employee’s gross earnings or taxable earnings?
- Is my annual contribution limited to a percentage of income like a SEP or Profit Sharing plan?
