TSP: Changes in 401(k) Plans Take Effect This Year

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TSP: Changes in 401(k) Plans Take Effect This Year

The changes in 401(k) plans that take effect this year can have implications for the Thrift Savings Plan (TSP) as well, since both are retirement savings vehicles. Here are a few potential impacts:

  • Contribution Limits: If the contribution limits for 401(k) plans increase, a similar adjustment may apply to the TSP, allowing participants to save more toward retirement.
  • Salary Deferral Changes: Enhancements to salary deferral options in 401(k) plans may encourage similar updates in TSP policies, potentially giving government employees more flexibility in how they contribute.
  • Employer Matching: Changes in employer matching contributions could prompt discussions about adjustments in TSP matching policies, impacting how much employees can receive from the government based on their contributions.
  • Withdrawal Rules: Any new rules related to withdrawals from 401(k) plans might influence decisions regarding withdrawal options available in the TSP.
  • Roth Option: If there are expansions in Roth 401(k) options, the TSP might consider similar offerings, allowing participants to make after-tax contributions.

It’s important for TSP participants to keep an eye on these changes and understand how they might affect their retirement planning. For specific details, checking the official TSP website or consulting a financial advisor can provide more tailored guidance.

 

OPM Officials Tout Agency’s Transformation Under Biden

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OPM Officials Tout Agency’s Transformation Under Biden
Leaders at the federal government’s dedicated HR agency said the organization has come a long way since being targeted for elimination by the first Trump administration.
Just six years removed from an unsuccessful bid to break up the federal government’s dedicated HR agency, officials at the Office of Personnel Management are touting the agency’s transformation during the Biden administration. Follow link to read more from Government Executive. https://www.govexec.com/…/opm-officials-tout…/402180/

This 401(K) Change Could Maximize Your Savings

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This 401(K) Change Could Maximize Your Savings

 Source: NewsNation 

  • New contribution limit for those 60 to 63 years old is $11,250
  • The 2025 change increased the limit by $3,750
  • If you exceed the contribution limit, you will be double-taxed

A change in 401(k) plans takes effect this year, which means some people who save in their retirement plans could maximize their savings.

The change — which applies to 401(k)s as well as 403(b)s, governmental 457(b) plans and the federal government’s Thrift Savings Plan — is a result of the Secure 2.0 tax law passed in 2022. It’s meant to give those who are approaching retirement age an opportunity to save more money. Follow link to read more. https://www.newsnationnow.com/business/your-money/contribution-limit-increase-401k/

OPM Retirement Center 

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OPM Retirement Center 

Do You Know About the OPM New Retirement Resources? 

OPM is here to help you transition from serving the American people to enjoying your retirement. These links are useful to new and existing retirees throughout their retirement journey.

Explore the Retirement Quick Guide

Retiring Soon?

Tax Help for Annuitants

 Follow link to read more about the new retirement resource center. https://www.opm.gov/retirement-center/

 

The GPO-WEP Repeal Bill

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The GPO-WEP Repeal Bill

The “windfall elimination provision” affects how the amount of your retirement or disability benefits is calculated if you receive a pension from work where Social Security taxes were not taken out of your pay. A modified formula is used to calculate your benefit amount, resulting in a lower Social Security benefit.

The GPO-WEP Repeal Bill has been signed into law, marking a significant development for those affected by the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). With the bill now in effect, the process for retroactive payments is set to begin. This legislation aims to provide fairer Social Security benefits to individuals who have contributed to pension plans while working in public service jobs. As details unfold, beneficiaries will be looking forward to the adjustments and payments that will be coming their way.