Questions & Answers
Q&A
THE FOLLOWING QUESTIONS & ANSWERS were compiled by NARFE’s Federal Benefits Institute experts. NARFE does not provide legal, financial planning or tax advice or assistance.
EMPLOYMENT TSP CONTRIBUTION LIMIT
Q
I plan to retire sometime in 2022. How much am I allowed to contribute to my Thrift Savings Plan (TSP)?
A
A tax law limits the dollar amount of contributions to retirement plans and requires the limits to be adjusted annually for costof-living increases. In 2020 and 2021, the elective deferral limit was $19,500, and the catch-up contribution limit (available to those 50 and older) was $6,500. You can find the annual limitations at www.tsp. gov/making-contributions/ contribution-limits/. At press time, the 2022 limits had not been announced. You can determine how much you can contribute each pay period by using the “How Much Can I Contribute” calculator available at www.tsp.gov/calculators/. To use this calculator, you’ll need your most recent leave and earnings statement (LES) or pay slip and the number of salary payments you have left for the year. You can contribute up to the annual limit any time during the year. For example, if you want to retire in June, you can have the annual limitation amount spread out over 13 pay
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periods. Make sure that your paycheck will be sufficient to deduct the amount that you elect.
OPEN SEASON
Q A
What benefits can be changed during the annual federal health benefits Open Season? This year’s Open Season started on November 8 and runs through December 13, 2021. During Open Season, you may: • Change or add a dental or vision plan under the Federal Employees Dental and Vision Insurance Program (FEDVIP) at www.benefeds.com. • Choose a 2022 Flexible Spending Account (FSA) allotment (employees only). • Change health plans or enroll in the Federal Employees Health Benefits (FEHB) program. Some agencies have their own system in which you can make an enrollment change online. Retirees should contact the Office of Personnel Management (OPM) or use
FOR MORE INFORMATION, SEE THE NARFE OPEN SEASON REPORT ON PAGE 22.
OPM’s online service to make any FEHB changes.
MILITARY DEPOSIT
Q
When should I make a deposit for my military service? I heard I should do it towards the end of my career. What is the benefit of “buying my military time”?
A
Making a military service credit deposit into the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) will allow credit for military service to go towards your retirement eligibility and computation. While you are eligible to make this deposit at any time during your civilian career, interest will accumulate, so it is advantageous to pay this deposit before your third anniversary of civilian federal service to avoid any interest. The deposit must be completed before you retire. Instructions for completing a deposit can be found at www.dfas.mil/ CivilianEmployees/.
