How do you all calculate how to hit 23k exactly on tsp? I don’t want to overshoot but also don’t want to undershoot. Do you tweak the percentage out of your LES per month to get somewhat close to the 23k by the end of the year? Thanks!
Posted by Local-Excuse8929
3 Comments
https://www.reddit.com/r/MilitaryFinance/comments/185isgd/comment/kb1u57y/?utm_source=share&utm_medium=mweb3x&utm_name=mweb3xcss&utm_term=1&utm_content=share_button
$23,000 / 12 months = $1,916
$1,916 / your base pay = percentage to contribute
For example, your base pay is $5,000
$1,916 / $5,000 = 38.3%, round up to 39%
Set that in November of the previous year so it goes into effect by January at the start of the year.
You don’t need to tweak it monthly, that’s a waste of time and effort. Set it once and let automation do it’s thing.
If you overshoot, you’ll get the money paid back a few months later, or the DFAS computers just won’t withdraw the excess and your end of year pay will be a bit higher.
Set it to the percent that contributes $1920/mo. Since it’s already July you probably have to set it to something higher.
Recalculate every January due to pay raises and new limits.
Agree with what others posted but also note:
1. If you’re BRS and max early (not contributing at least 5% to your tsp yourself), you won’t get that months match from the government. So don’t get it wrong, lest you lose free money.
2. Make sure to account for your TIS pay bumps too. This always takes a little adjusting. Mine is in July, so on those pay bump years, I have to do additional calculations to make sure I both max but also don’t get done early so I can get my BRS match.