2023 TSP Contribution Tables

[james857]

@angel4sin23 I’m thinking she was confusing TSP max with IRA max. Numbers would check out if so.

 

[mudhen]

@patto That 4.6% pay bump is rough, especially with recruitment goals not being met across the board

 

[yandere]

@mudhen Wait till you hear what the average civilian pay increase is

 

[mudhen]

@yandere Wow man, great point! I should never expect a pay increase in pace with inflation

 

[yandere]

@mudhen My point is that this pay raise is better than 90% of what other Americans are getting so it wouldn’t affect recruiting considering the shitty alternatives. Additionally, our pay raise is based upon the previous years civilian pay and with consideration to the CPI. It will always lag because of the way this is calculated. It’s not rocket science. I would assume a much larger pay raise next year if inflation continues and civilian pay starts to increase.

Also I can’t speak for other services but I’m in the navy and navy recruiting has met goals for enlisted this year. It did not meet officer quotas. There seems to be a prevailing myth (at least on r/navy) that recruiting is so bad but that’s not true.

 

[mudhen]

@yandere

It will always lag because of the way this is calculated.

It did not meet officer quotas.

Wow, great. Just go waste someone else’s time, you’re trying to argue with me but you’re also proving my point.

 

[bensherie]

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[nate8u]

@mudhen You can thank the Biden administration for that one

 

[tbslee]

@patto I’m confused what the different tables mean

 

[patto]

@tbslee If you are under 50 and just want to max out the TSP evenly over the year, Table 1 shows you how much to contribute. Some people who are under BRS want to contribute a little more each month to get more money in the TSP earlier. The problem with that is if you contribute too much you can max out before the end of the year and lose out on matching contributions. Table 2 shows the maximum you can contribute and still ge the full match all year. Tables 3 and 4 have the same purposes as Tables 1 and 2, respectively, but they are for people who are 50 and older and can make catch-up contributions. Basically, here is who should use each table.

Under 50 and want to max out the TSP, contribute at least the amount in Table 1.

Under 50 and want to make sure you get the match all year, contribute no more than the amount in Table 2.

50 and older and want to max out the TSP, contribute at least the amount in Table 3.

50 and older and want to make sure you get the match all year, contribute no more than the amount in Table 4.

 

[lost_sheep85]

@patto This is gonna sound dumb, but I’m still confused on tables 1 and 2. To max out the TSP at $22.5k in 2023, isn’t it an even $1875/month contribution across the board? Obviously that means the percentages would change based on rank and TIS, but why would it make the rates different in tables 1 and 2?

For example, an O2 with 2 years TIS would need to contribute $1875/month for 12 months to max out the TSP (just like everyone else). So 1875/4772.58 = 39.2% (round to 40%). This would also obviously be enough to get the 5% match all year.

Where did the 43% and 41% come from in the tables?

Obviously I’m not saying you’re wrong. Just trying to figure out what I’m missing.

 

[patto]

@lost_sheep85 Thanks for pointing this out! I made a mistake in the spreadsheet and applied the raise for next year to the 2021 pay table instead of the one for this year. That made all of the contribution numbers erroneously high. Your math is spot on. The link has been updated with corrected tables.

 

[magicalskittlz]

@patto Even with a promotion from O-1 to O-2 it'll be pretty much the same contribution percentage to max out my TSP next year.

 

[saved88]

@patto Thanks for this. I’m sure it took some work

 

[nathalielewis]

@patto For O-2 with 4+ years how is the max amount being 33, but if you want full match through December it is 34. Shouldn't the max amount be equal to or lower than the full match in Dec for every value. I know I am splitting hairs here but I want to maximize my contributions.

I am guessing it is a rounding error but if I only do 33 instead of 34 could be a few hundred dollars.

 

[anony0611]

@nathalielewis (Table 2)The full match is the max you could put in to get the 5% matching, meaning your December payment will be smaller, but the other 11 months will be larger, this makes sure you don't put too much in too early and then can't put at least 5% in December

(Table 1)The minimum amount to max out your TSP, will result in more "even" payments

Both ways you reach the $22500 and get 5% matching each month, and as long as the percentage you allocate is between the 2 numbers you'll be good, doesn't matter much for you, but some ranks have bigger differences

Edit: if you go over the number in table 2 then you won't get the full matching amount in December and if you go under the number in table 1 then you won't hit the $22500 contribution

 

[nathalielewis]

@anony0611 Yes but shouldn’t percentages be less or equal in table 2 compared to table 1?