[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]As we all know with Thrift Savings Plans (TSPs), retired workers aren’t normally allowed to make new investments after leaving their role with the government. However, for those rehired by the government, the story is a little different.
For all rehired annuitants, the same TSP investment terms apply as to any other active employee. For example, this includes government contributions when under the FERS program. In 2019, $19,000 is considered to be the annual maximum.
This being said, we should note that there are certain circumstances where rehired annuitants cannot invest in their TSP. For example, anybody allowed both full annuity and full pay should ask for advice before taking action (particular authorities allow receipt of both).
For any active employees over the age of 50, catch-up contributions could also be possible with the TSP. Whether you left for a period and came back or have been in the same role continuously, this is possible, and the limit sits at $6,000.
Unfortunately, retroactive contributions still aren’t attainable which means that catch-up contributions can only be paid for the current year. If a rehired annuitant retired and then missed a year of catch-up eligibility, it’s now too late to redeem this benefit.
However, this information is still useful to know, and we hope to have helped some rehired annuitants currently looking for advice!
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