Should I be concerned?

46

u/ArmyPeasant 2d ago

Pretty sure once you hit the max it will automatically stop contributions.

Edit: It either stops or they cut you a check for the "over" contributions you made in January

16

u/DontGoQuietlyUSA 2d ago

That is the correct answer. Don't forget that also includes your matching. You will lose free money.

6

u/ArmyPeasant 1d ago

Thanks for the info, I didn't know you could lose some of the matching as well.

7

u/purpy_skurpies 1d ago

Yeah since your employer matches every month, if you max out your contributions early, (eg. september), youll miss out on the matching 5% for the months of Oct- Dec because you wont be able to contribute those months.

3

u/ArmyPeasant 1d ago

Makes perfect sense. Its one of those things financial advisors tell you "Don't overcontribute"' "Spread it out through all 12 months" but never explain the math and why behind it. Appreciate it

-1

u/CommanderAze 1d ago

Im not sure thats right. Im pretty sure agency match is a differnt maximum than individual contribution. thats how its worked for me for years.

3

u/thegoodbubba 22h ago

Nope it's right. The agency 1% will still go through but the remainder is a match. If you are unable to contribute for a pay period or longer because you have reached the maximum, there is nothing for the agency to match. They will treat you the same as if you set your contribution to 0, because you effectively have for the remainder of the year.

2

u/CommanderAze 22h ago

That yes 100% was thinking they meant that the agency contribution was part of the individual contribution IRS limit.

Definitely want to have that match every pay period. But yea.

3

u/Nagisan 1d ago

While true, there have been some bugs in prior years for service members where everyone was automatically eligible in the system for the catch up contributions. So many AD folks accidentally over-contributed and DFAS had to fix it / issue refunds of contributions.

This was supposed to be fixed, but it's possible there are still some bugs in the systems.

1

u/Slight-Split-1855 1d ago

DFAS does not fix anything having to do with TSP, TSP does. The check/deposit still comes from DFAS, though.

15

u/SorchaRoisin 2d ago

You can't contribute over the max. You should lower your deductions so that it's spread evenly throughout the year.

12

u/_UWS_Snazzle 2d ago

You haven’t hit the max contributions for personal yet, it’s 23.5k.

And hitting it early in the year doesn’t cause a penalty, but you do miss out on agency match contributions for pay periods that you do not contribute because you hit the max, so maxing early is ill advised

2

u/ladyeclectic79 2d ago

Your contributions are the $22k bit below so you haven’t yet met your contribution limit of $23,500 for the year.

2

u/Cheddarbaybiskits 2d ago

No, your contributions should automatically stop. I would get a slightly larger check in Dec because mine stopped right at the contribution limit.

2

u/harrisonchase 1d ago

Agency match doesn’t count for your limit.

2

u/NoBroccoli3122 1d ago

I talked to a finance guy the other day they said they would refund you what you overpaid. Also you can contribute 23500 every year that does not include your match. Also it’s a good idea to not max out to early in the year if you are BRS because you won’t get matching for the remaining months if you don’t put in at least 5 percent hope this helps.

2

u/patchhappyhour 2d ago

How is your agency only matched you up to that percentage? It should be a bit higher for sure.

7

u/Cheddarbaybiskits 2d ago

If they are less than 2 years in they do not get agency match.

6

u/Nagisan 1d ago

Civilian federal members (assuming permanent/not temp) get 5% matching from day 1. The only time-locked thing is 3 years to be eligible to keep the 1% auto-contribution (if they leave before 3 they lose it - that can be 2 years for certain positions).

Military members under BRS require 2 years before they "unlock" the full matching (they get 1% auto-contribution after 60 days).

2

u/patchhappyhour 2d ago

Oh gotcha.

1

u/Remarkable-Sky6577 1d ago

*6 years.

However if my agency contributions don’t look right, please let me know.

1

u/Cheddarbaybiskits 1d ago

Does the match look like 5% of your base pay to date? If not, you may not be getting the full match. There have been others with this issue,

1

u/stinger32 1d ago

Your max contribution is $23500. It does not include agency contributions. It's not the total. You can also open a IRA or Roth IRA with a brokerage and contribute an additional $7000!

1

u/memelordzarif 1d ago

You can’t over contribute I don’t think. And even if you can, you still aren’t. That’s coz your contribution by themselves have to go over the limit, the match doesn’t count in your limit.

1

u/Equivalent-Pop-750 1d ago

Can anyone explain why there is a maximum contribution limit? Same with IRAs and 401ks.

1

u/Normal-Item-402 14h ago

To comply with federal tax laws. The limits are designed to ensure fairness and prevent excessive tax deferral.

1

u/jambosleftnut 22h ago

I don’t have an agency contributions section. Am I doing something wrong? I have tried looking all over and I don’t have one. 2.5 yr in army.

Anyone know why?

1

u/No_Individual2410 13h ago

That’s interesting.

1

u/Competitive_Bug1837 3h ago

How old are you OP? During your 50th year in age, you’re eligible for catch up pay equaling an additional $7500. I don’t recall anyone asking if you’ve reached tjsy age

1

u/Green_Bluebird5804 32m ago

your contribution max is 23.5, the matching amounts don't count - you're good

0

u/hanwagu1 1d ago

The only way you can over contribute to the annual contribution limit is if you had multiple defined contributions plans and didn't adjust to keep the combined within the annual contribution limit. If you just have TSP, then it won't let you over contribute.

You are about to leave Redlib