In this episode, Ed and Dan explain what happens when federal employees contribute too much to their Thrift Savings Plan (TSP), especially if they also participated in another employer-sponsored retirement plan such as a 401(k) during the same year. This episode walks through how excess contributions can occur, how to identify them using W-2 forms, and the steps participants must take to request a refund before important IRS deadlines to avoid additional tax complications.
Check Out Our Next FERS Webinar for Federal Employees -
FedLife Podcast (Ep.164): TSP Excess Contributions Explained
Join us as Dan and Ed break down the rules surrounding excess retirement plan contributions and highlight what federal employees should do if they accidentally exceed annual TSP contribution limits.
In this episode, you’ll learn:
• The annual elective deferral and catch-up contribution limits that apply to the TSP
• How excess contributions can happen when participating in both the TSP and another retirement plan like a 401(k)
• How to identify excess contributions using Form W-2 (Box 12 codes)
• The steps required to request a refund of excess TSP contributions using Form TSP-44
• Important deadlines, including the March 15 request deadline and April 15 processing deadline
• Tax implications of excess contributions and how earnings on refunded amounts are treated
Source Article: https://stwserve.com/what-are-the-consequences-of-making-excess-contributions-to-the-tsp/
Like and Subscribe on YouTube at YouTube.com/FedLife
“Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Lee, Sipe & Associates, Inc. is not a registered broker/dealer and is independent of Raymond James. Content represents the opinions of the speaker and not necessarily those of Raymond James. Important Disclosure Information: http://raymondjames.com/smicd.htm.
