On November 13, the Senate cleared, by unanimous consent, legislation (H.R. 3340) that would allow federal employees aged 50 and older to make additional contributions to their Thrift Savings Plan (TSP) accounts, sending it to the President. The bill passed the House on October 7 (see The Source, 10/11/02).
Under the bill, federal employees aged 50 and older could contribute an extra $2,000 to their TSP in 2003. The catch-up contribution limit would be raised to $3,000 in 2004, $4,000 in 2005, and would be capped at $5,000 in 2006.
Current law allows individuals in the private sector who are at least 50 years old to make “catch-up” contributions to their employer-sponsored retirement savings plans, such as 401 (k) plans and tax-sheltered annuities. H.R. 3340 would extend the “catch-up” provision to federal employees who participate in the TSP.
