How Much Does The Postal Service Match On Your Tsp

592 Contributions

592.one Basic Pay

The Postal service bases all contributions to the TSP on bones pay. Refer to 432.2.

592.two Contribution Rates

Employees must contribute in whole percentages or whole dollar amounts.

592.3 Maximum Contribution Rates

FERS or CSRS employees may contribute a percentage of bones pay upwards to the Internal Acquirement Service (IRS) annual maximum. The Postal Service withholds contributions each pay period.

592.iv Automated Contributions

592.41 FERS Employees

The Postal Service automatically contributes an amount equal to one percent of the employee's bones pay every pay menstruation. This agency automatic contribution starts the showtime pay flow in the showtime election period that the employee is eligible to contribute and occurs even if the employee chooses not to contribute. This automatic contribution does non bear upon the employee's salary.

592.42 CSRS Employees

At that place is no agency automatic (1 percent) contribution for CSRS employees.

592.43 Employee Responsibilities Regarding Automatic Enrollment, Participation, and Requests for Refunds of Automatic Enrollment

To change or end contributions to the TSP, employees must submit their contribution elections through one of the post-obit:

PostalEASE from LiteBlue or Blue.
Calling the HRSSC at 877-477-3273, selection 1 (TTY 866-260-7507).

Participants automatically enrolled in the TSP may asking a refund of the contributions deducted from their basic pay (including associated earnings) associated with the beginning 90 days of automated enrollment. To request a refund, participants must submit TSP-25, Automatic Enrollment Refund Request, directly to the TSP, and the TSP must receive it no later than ninety days after the TSP's receipt of the beginning automatic enrollment contribution (the refund deadline date).

The TSP treats refunds as taxable ordinary income earned and will withhold 10 percent of the refund for federal income taxes. However, refunds are not subject to the Internal Revenue Code ten pct early withdrawal penalty tax.
FERS participants will forfeit the agency matching contributions (and associated earnings) when their refund asking is processed. The agency automatic (one percent) contributions remain in the participant'due south TSP account.
Participants rehired and again automatically enrolled in the TSP upon reappointment may not exist eligible for another opportunity to request a refund of automatic enrollment contributions from the menstruum of reemployment. A new 90-day refund period is not allowed unless one total agenda year (January through Dec) has passed since the participant's last automatic enrollment contribution.

592.5 Matching Contributions

592.51 FERS Employees

The Mail matches employee contributions dollar for dollar through the offset three percent of bones pay the employee contributes. The next 2 percent of bones pay the employee contributes is matched at the rate of 50 cents for every U.S. dollar. (See chart beneath.)

Employee Contributions	Mail Automated and Matching Contribution	Full Contributions
0%	1%	1%
one%	2%	3%
2%	iii%	5%
3%	four%	7%
4%	iv.5%	8.v%
5%	v%	10%
Over 5%	5%	10% plus employee contributions over five%

592.52 CSRS Employees

At that place are no agency automatic or matching contributions for CSRS employees.

592.six Vesting of Contributions

592.61 CSRS Employees

Employees are vested immediately in their own contributions and all earnings attributable to these contributions.

592.62 FERS Employees

Employees are vested immediately in the following:

Their own contributions.
The agency matching contributions.
The earnings owing to these contributions.

Employees are vested in the agency automatic contribution and earnings associated with those contributions subsequently attaining three years of creditable civilian service equally adamant by their TSP Service Computation Engagement.

The Mail service considers employees who die in service every bit vested in the agency automatic contributions.
Employees on the rolls betwixt Jan i, 1984, and December 31, 1986, who the Post automatically converted to FERS on January 1, 1987, received a one percent retroactive contribution for that time frame and were vested immediately in the retroactive contribution.

592.7 Maximum Contribution Amount

Each yr the IRS sets the maximum contribution amount, which may vary annually. The TSP announces the limits on the Thriftline, at world wide web.tsp.gov, and various publications.

592.8 Taxes

592.81 Traditional TSP Taxation

Employees electing to make traditional contributions defer paying taxes on their contributions and the earnings until they withdraw them. Contributions of employees who are members of the uniformed services and who are making tax-exempt contributions will be tax-gratis at withdrawal, but their earnings will be discipline to tax.

592.82 Federal Income Taxes

Employees brand all traditional TSP contributions on a before-tax basis. The money contributed to the programme is non included when federal income taxes are calculated. TSP contributions are subject to Medicare and Social Security taxes.

592.83 Land Income Taxes

The majority of states that tax income besides consider contributions to the TSP on a before-tax basis. The law of the state in which the employee resides determines whether TSP contributions are tax deferred.

592.84 Roth (Later-tax) TSP Revenue enhancement

Taxes on the contributions of employees electing to make Roth contributions are withheld from these employees' taxable wages as they make their contributions. Their earnings are so tax-complimentary at withdrawal as long every bit they run across certain IRS requirements. By contributing after paying taxes on the earnings, employees gain the tax do good when they begin their post-employment distribution.

The chart below provides basic information on the differences in tax between traditional and Roth TSP contributions. Employees must contact their auditor, revenue enhancement preparer, or other certified fiscal professional to decide which option may exist the all-time for them.

The Treatment of …	Traditional TSP	Roth TSP
Contributions	Pre-Revenue enhancement	After-Tax
Employee Paycheck	Taxes are deferred, and so less coin is taken out of the employee's paycheck.	Taxes are paid upwardly front, so more money comes out of the employee's paycheck.
Transfers In	Transfers allowed from eligible employer plans and traditional retirement accounts (IRA).	Transfers immune from Roth 401(yard)s, Roth 403(b)due south, and Roth 457(b)south.
Transfers Out	Transfers allowed to eligible employer plans, traditional IRAs, and Roth IRAs.	Transfers allowed to Roth 401(k)s, Roth 403(b)southward, Roth 457(b)southward, and Roth IRAs.
Withdrawals	Taxable when withdrawn.	Tax-complimentary earnings if five years have passed since January 1 of the year the employee made his or her first Roth contribution, and he or she is historic period 59 one/2 or older, permanently disabled, or deceased.

TSP keeps participants' traditional residual and Roth rest in separate "buckets" in participants' TSP account to track contributions and transfers into the business relationship. Even so, all transactions include a proportional amount from each residual. Participants cannot select 1 or the other balance when requesting transactions, such equally contribution allocation changes, interfund transfers, loans, and withdrawals.

592.nine Bereft Earnings

592.91 Employees on Get out Without Pay

Employees on leave without pay (LWOP) for an entire pay flow cannot contribute to the TSP and practise non receive agency contributions to the TSP, including the bureau automatic (1 percent) contribution.

Exception: Employees on approved LWOP to serve every bit a full-time officer or employee of an system composed primarily of employees can contribute to the TSP. The commanded contributions are based on the basic pay with the Postal Service and must be withheld from pay. For FERS employees, the paying system makes the decision whether to make the agency automatic contributions, matching contributions, or both.

592.92 Reduced Earnings

Employees' TSP contribution is determined individually each pay period based upon the basic pay the employee earned that pay period. TSP employee contributions can be taken as a fractional deduction. When at that place is non enough bachelor net pay to take the entire deduction, the TSP deduction will be taken based on the priority of deduction schedule the Postal Service established.