New TSP contribution limits for 2024, over $2 Billion moved to G in October, plus a new loan tracking tool.
Here’s a review of some recent news regarding the Thrift Savings Plan (TSP). For commentary on recent returns, check out Jennifer Meyer’s monthly recap.
Transferring to the G-Fund
The markets have been down lately. This does not mean you should panic. If anything, now could be a great time to buy as prices are dipping. But it appears that there is a strong element of fear across the federal workforce as $2.1 billion was transferred to the G-fund in October. The G-fund is appealing because it is guaranteed to have a non-negative return, and it can be a strong component in a properly balanced TSP account, but putting the whole balance of a TSP account in G can have detrimental effects, mostly because it has a propensity to be outpaced by inflation. Check out this podcast to learn more.
Learn more about the TSP at our no-cost webinar for federal employees!
The S fund saw $1.17 billion transferred out in October, the most of the main five TSP funds.
2024 TSP Contribution Limits
As predicted back in August, the 2024 TSP contribution limit is set to increase next year by $500, going from $22,500 to an even $23,000. The catch-up amount for those at age 50 or older will not change, remaining at $7500. This means feds at age 50 or over will be able to contribute up to $30,500 in 2024. However, it is important to remember that the maximum amount per pay period must be contributed to get the full match. That’s $884.62 per paycheck.
New TSP Tool
The status of a TSP loan can now be tracked by account holders in real time with the new “TSP Loan Tracker,” which recently went live on the tsp website. This includes the status of pending applications for TSP loans. Related to this, users will soon be able to receive text message alerts about loans from the retirement savings plan for federal employees. Now, whether of not a TSP loan is a good idea is a whole other issue. Check out this article from the FEDZONE.
Until Next Time,
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**Written by Benjamin Derge, Financial Planner, ChFEBC℠ 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 Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
