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THRIFT SAVINGS PLAN
2007 Catch-Up Contributions for Participants Age 50 and Older
New Dates and Contribution Limits
If you are a Thrift Savings Plan (TSP) participant age 50
or older, you may be eligible to participate in the Catch-Up
Contributions for the TSP. Note the new dates and contributions limits that follow:
• These contributions supplement your regular TSP
employee contributions; that is, they do not count
against the Internal Revenue Service (IRS) annual
limit on elective deferrals ($15,500 in 2007), but they
do have their own annual Catch-Up limit, which is
$5,000 in 2007.
• There are no Postal ServiceTM matching contributions
associated with TSP Catch-Up Contributions.
• Your initial election for 2007 can be effective no earlier than the first pay period (PP) in the 2007 calendar
year (PP 01-07), which begins December 23, 2006.
• For your initial elections to be effective during that
first pay period, you should make your election using
PostalEASE between Wednesday, December 20,
2006, at 12:01 P.M. CT and Wednesday, January 3,
2007, at 11:59 A.M. CT.
• After December 23, 2006, you will be able to elect
Catch-Up Contributions at any time. Once you do,
you can change the amount or stop at any time, using
PostalEASE, without affecting your regular
contributions.
Eligibility for Catch-Up Contributions
To elect Catch-Up Contributions, you must:
• Be age 50 or older, or turn 50 in the calendar year the
election is submitted and processed.
• Be able to self-certify that by the end of the calendar
year you will have contributed the IRS annual deferral limit, $15,500 - through regular contributions to
TSP and/or to other plans subject to the elective deferral limit.
• Be in a pay status. Contributions are made from basic pay through payroll deductions only.
• Not be in the 6-month noncontribution period following the receipt of a financial hardship in-service
withdrawal.
Note: There is no "look-back" provision to see what you
could have contributed but did not. If you are eligible to participate, you simply have the right to contribute the additional funds up to the annual Catch-Up Contribution limit. If you
have been performing active duty military service, however,
you may be eligible to make missed Catch-Up Contributions under the Uniformed Services Employment and
Reemployment Rights Act (USERRA).
How to Enroll in TSP 50+ Catch-Up
Contributions for Calendar Year 2007
To prepare to start TSP 50+ Catch-Up Contributions, before accessing PostalEASE, read the instructions in the
TSP Catch-Up Contributions material sent to your address
of record and then complete the enclosed worksheet. If you
did not receive the mailing, call the Employee Service Line
toll-free at 877-477-3273 to reach the Human Resources
Shared Service Center (HRSSC).
You may access PostalEASE on the Employee Web on
the Internet at https://liteblue.usps.gov, on the Postal
Service Intranet Blue, or at an employee self-service
kiosk. Using one of these may be easier than using the
telephone. Just follow the instructions. Otherwise, call the
Employee Service Line toll-free line at 877-477-3273 to
reach PostalEASE.
You must have available your Employee ID (found at the
top of your earnings statement) and your USPS personal
identification number (PIN). Instructions for obtaining your
USPS PIN are on the worksheet.
Catch-Up Contributions will be invested in your account
based on the most current contribution allocation on file
with TSP. Your contribution allocations must be made with
the TSP using the TSP Web site, ThriftLine, or Form
TSP-50, Investment Allocation.
Other Information
Making elections after PP 01 - You may make more
than one election in any given calendar year (so long as
you do not exceed the annual Catch-Up Contributions limit). You must complete your election using PostalEASE by
11:59 A.M. CT the second Wednesday (day 12) of each pay
period in order for the election to be effective in that pay
period.
Keeping within your tax deferral limit - The annual
amount of your Catch-Up Contributions is combined with
your regular tax-deferred contributions and shown in the
deferral block of IRS Form W-2. If the amount shown exceeds the IRS limit for regular contributions, the IRS will
check your date of birth with the Social Security Administration and assume any amount over the limit is attributable to
the Catch-Up Contributions. If you see that you will exceed
the Catch-Up Contributions limit (usually by contributing to
more than one plan), you may contact the TSP and request
a refund of the excess Catch-Up Contributions.
Terminating Catch-Up Contributions after withdrawals - If you receive a financial hardship in-service withdrawal, your Catch-Up Contributions must stop along with
any regular employee contributions for a period of
6 months.
Making elections next year - Your Catch-Up Contribution election terminates automatically with the last pay
date of the calendar year to which it applies unless you
have previously terminated the election or you have
reached the annual Catch-Up Contribution limit. You will
need to make a new election for each calendar year in
which you wish to make Catch-Up Contributions.
Questions - If you have questions about TSP or
PostalEASE, contact the HRSSC for assistance.
— Compensation,
Human Resources, 12-7-06
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