The 2023 contribution limits have been released by the IRS, and are in-line with earlier projections. Also, an update on the June TSP transition and how online accounts are getting hacked.
Regarding next year’s limits on TSP contributions, prior projections were spot on. The TSP contribution limit is increasing by 9.8% from $20,500 to $22,500. Catch-up contributions, which can be made by those age 50 or older, is also increasing from $6,500 to $7,500 – which is a 15.4% boost. For those who can also make catch-up contributions, the total limit for next year has reached $30,000. This means there has been a 30.43% uptick since 2013 when those over age 50 could contribute up to $23,000 annually to their TSP.
Learn more about TSP contributions and investments at a No-Cost Webinar featuring Ed Zurndorfer:
Hackers and the TSP Transition
In other news revolving around the TSP, reports have been released about hackers who took advantage of the transition to a new online system and recordkeeper this past June. When Accenture took over, it required TSP account owners to establish new log-in credentials and security measures. Unfortunately, some hackers beat TSP account owners to the punch by changing contact information and setting up the new a log-in with fraudulent information.
One VA employee, Kristy Ditzler, was notified in September that her TSP.gov contact information had been changed. She promptly called the TSP hotline and was instructed to lock her account… something she couldn’t do because she no longer had access to the account online. Then Kristy filed a report with FBI. After not hearing a word for 3 weeks, TSP contacted her but couldn’t help because her PIN and email had been changed by the hackers. She was subsequently unable to verify her identity. Almost a month since she was notified by TSP of the suspicious activity, Kristy was contacted by the Virginia office of the Inspector General. On October 12th, the TSP fraud team let her know a $98,000 hardship withdrawal that was initiated by the hackers was not sent out, however this money had been frozen since the withdrawal was requested. She was also informed that the identity thieves used 8 different IP addresses before gaining access, and she also suspects her information was available to the perpetrators because of the 2014 OPM infiltration that left thousands of federal employees’ personal information compromised.
If you haven’t set up your new log-in on TSP.gov since June, don’t hesitate any longer. Not establishing the new log-in and security measures makes it much easier for ‘bad actors’ to seize control of your TSP account.
Since Accenture took over in June, and formally apologized for the “botched transition” later in the summer, there have user complaints of having trouble proving their identity, beneficiary forms requiring resubmission, and even historical account data getting lost in the switch.
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Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
