R 241920Z NOV 20 MID200000413164U
FM DFAS CLEVELAND OH
TO AIG 4730//
AIG 4676//
AIG 4678//
BT
UNCLAS
SUBJ/INFORMATION REGARDING THE NEW TSP SPILLOVER PROCESS//
MILITARY PAY ADVISORY 30/20//
REF/A/WEBSITE/WWW.TSP.GOV//
NARR/REF A IS THE THRIFT SAVINGS PLAN OFFICIAL WEBSITE//
POC/SEAN-THOMAS TEAHAN/CODE JFLQ/TEL: 216-204-6706//
RMKS/1. THIS MILITARY PAY ADVISORY IS BEING ISSUED TO
PROVIDE INFORMATION FOR THE NEW TSP SPILLOVER PROCESS.
2. BEGINNING JANUARY 1, 2021, TSP CATCHUP IS SWITCHING OVER TO A
SPILLOVER METHOD.
3. SPILLOVER REPLACES CATCHUP BY CONTINUING CONTRIBUTIONS PAST THE
REGULAR DEFERRAL LIMIT UNTIL A MEMBER REACHES THE CATCHUP LIMIT.
THERE WILL BE NO SEPARATE CATCHUP ELECTIONS.
4. MEMBERS THAT ARE TURNING 50 IN THE CURRENT YEAR OR ARE OLDER THAN
50 WILL AUTOMATICALLY BE PLACED IN THE SPILLOVER PROGRAM.
5. MEMBERS IN SPILLOVER WILL NEED TO PLAN THEIR TSP CONTRIBUTIONS
ACCORDINGLY TO ENSURE THEY REACH THE IRS LIMIT WITHIN THE CALENDAR
YEAR. TSP ELECTIONS ARE STILL ENTERED THROUGH MYPAY.
6. MEMBERS WHO ARE TURNING 50 IN THE CURRENT YEAR OR ARE 50 AND
OLDER WHO DO NOT WANT TO PARTICIPATE IN SPILLOVER WILL NEED TO
MANUALLY STOP THEIR TSP WHEN THEY REACH THE IRS LIMIT FOR THE
CALENDAR YEAR.
7. REQUEST WIDEST DISSEMINATION POSSIBLE.//