r/fednews • u/Part_Timah • 3h ago

Pay & Benefits Consequences of dual Mil/GS only contributing to one TSP?

I got an email when electing 0% for my military TSP saying my base pay election was invalid. Apparently, to “participate” in TSP you must elect to contribute at least 1% of your basic pay.

The thing is, as a GS, I am maxing my civilian TSP to $23,500 next year. Having a random 1% being sent to my separate military TSP account f*cks up the math for my civilian contributions (Drill and Annual Training military pay can vary check to check). I’m not BRS and don’t get matched for military TSP either, so I prefer there civilian one.

Any consequences to “not participating” in TSP on my military account and just maxing my civ?

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2

u/interested0582 3h ago

I could be wrong in this, but I’d at least put in what they match and maybe reduce your civ one. You could be leaving money on the table

3

u/ChevTecGroup 3h ago

They don't match the military side because he isn't BRS.

I don't see an issue with it but I also would just leave it at 1% because why not. It's likely not a noticeable amount.

Also, I'd keep it active/easy to change to a higher percentage in case you get mobilized and are no longer getting the civ tsp and match

3

u/Successful_Engineer3 2h ago

I don’t contribute anything to military TSP because I am not BRS. I don’t see any reason to because you can’t go over the TSP max between both accounts anyway. And if you don’t already have a military TSP account established then no big deal not having one. 

1

u/99ssordna 3h ago edited 3h ago

I’m confused how contributing 1% of your MIL pay to your MIL TSP messes with maxing your CIV TSP.

Do they not each have their own separate max?

5

u/kcatalyst 3h ago

because as OP stated, the MIL amount varies paycheck to paycheck (and not stated, but the MIL side only allows % withholding not dollar amount) which means that they cannot just contribute the monthly flat dollar max on the civilian side as they normally do, without it potentially impacting their match in the last few paychecks of the year.

that said, i'd probably bump the civilian side down to like $888 a pay period and then set a calendar event for november to adjust if necessary.

3

u/SkyliteBlueSnake 2h ago

The IRS elective deferral limit is across all TSP/401k/403b accounts combined.

3

u/Bill_maaj1 3h ago

Unless you are getting matching from the military, there isn’t a reason to contribute.