{"id":259129,"date":"2025-10-29T17:39:09","date_gmt":"2025-10-29T17:39:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/259129\/"},"modified":"2025-10-29T17:39:09","modified_gmt":"2025-10-29T17:39:09","slug":"for-high-investing-fers-employees-its-time-to-review-tsp-investment-rates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/259129\/","title":{"rendered":"For High-Investing FERS Employees, It\u2019s Time to Review TSP Investment Rates"},"content":{"rendered":"

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\n\t\t\t\t\tSome employees invest at high rates early in the year in order to get money in the TSP sooner and take advantage of potential tax-advantaged growth for longer periods.\t\t\t\t\t Image: gopixa\/Shutterstock.com
\n\t\t\t\tBy: FEDweek Staff<\/a><\/p>\n

This point of the year is a good time for FERS employees who invest in the TSP at high rates to make sure they won\u2019t lose government contributions to their accounts due to hitting the annual investment dollar limit too early.<\/p>\n

The standard limit, called the elective deferral limit, is $23,500 in 2025. Further, investors who are\u2014or who will be by the end of the year\u2014age 50 or older during a calendar year may make \u201ccatch-up contribution\u201d investments above that limit. Before this year, the same limit applied to all eligible persons but effective in 2025, those age 60, 61, 62, or 63 in a given year have a higher limit, of 150 percent of the standard limit\u2014this year, $11,250 vs. $7,500.<\/p>\n

FERS investors should take care to structure their investments so that they can continue investing at least 5 percent of salary, the amount that produces the maximum government contribution, through every pay period of the year. If they hit the dollar cap before that, their own investments will shut off until next year and so will government matching contributions worth up to 4 percent of salary (although the automatic 1 percent of salary government contribution would continue). Once lost, matching contributions can\u2019t be recouped.<\/p>\n

Some employees invest at high rates early in the year in order to get money in the TSP sooner and take advantage of potential tax-advantaged growth for longer periods\u2014that is, \u201cfront-loading\u201d their investments. Especially those FERS employees who have been doing so might want to examine their situation around now\u2014even if they currently are in unpaid status due to the shutdown\u2014to determine if they should change their investment rate for the remaining pay periods of the year. That can be done directly through the TSP, which is not affected by the shutdown.<\/p>\n

There is no similar consideration for CSRS investors, who get no government contributions.<\/p>\n

Stress on Employees Grows as Shutdown Nears Record Length<\/a><\/p>\n

Judge Halts Shutdown RIFs, Implementation of Those Already Filed During Lapse<\/a><\/p>\n

Potential for Agreement on Shutdown Pay Bill, but Nothing Definite<\/a><\/p>\n

Series of Bills Offered to Address Shutdown\u2019s Impact on Employees<\/a><\/p>\n

OPM Details Coverage Changes, Plan Dropouts for FEHB\/PSHB in 2026<\/a><\/p>\n

See also,<\/p>\n

Does My FEHB\/PSHB Plan Stack Up? Here\u2019s How to Tell<\/a><\/p>\n

2025 TSP Rollercoaster and the G Fund Merry-go-Round<\/a><\/p>\n

5 Steps to Protect Your Federal Job During the Shutdown<\/a><\/p>\n

The Best Ages for Federal Employees to Retire<\/a><\/p>\n

Best States to Retire for Federal Retirees: 2025<\/a><\/p>\n

Bundle: Federal Employee Handbook + Legal Guide<\/a><\/p><\/p>\n","protected":false},"excerpt":{"rendered":"Some employees invest at high rates early in the year in order to get money in the TSP…\n","protected":false},"author":2,"featured_media":259130,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":{"0":"post-259129","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-personal-finance","10":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/259129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=259129"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/259129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/259130"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=259129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=259129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=259129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}