TSP begins catch-up contribution enrollment for 2006 Published Dec. 8, 2005 RANDOLPH AIR FORCE BASE, Texas (AFPN) -- The Air Force Personnel Center's civilian benefits and entitlements service team automated systems will be available for 2006 Thrift Savings Plan catch-up contribution enrollment beginning Dec. 11. Military members may submit their 2006 catch-up contribution enrollments in early January. TSP catch-up contributions are additional tax-deferred contributions, separate from regular TSP contributions. "Catch-up contributions are a good way for individuals to secure their retirement if they began investing late in life," said Janet Thomas, a personnel center human resources specialist. To be eligible for catch-up contributions, civilian and military employees must be age 50 or older in the year in which the first deduction from pay occurs, be in a pay status, and must be able to certify that they will make (or have made) the maximum "regular" TSP employee contributions of $15,000 by the end of 2006. They must contribute the full $15,000 since regular employee contributions are no longer limited to a set percentage each pay period. However, if the employee is contributing -- or has contributed -- to both a civilian and uniformed services TSP account or another eligible employer plan (for example, another 401(k) plan) and the combined contributions would cause the employee to reach the $15,000 elective deferral limit, the employee would be eligible to make catch-up contributions. They also must not be in the six-month non-contribution period following a financial hardship in-service withdrawal. Catch-up contributions have their own IRS annual limit that is separate from the annual limit for regular TSP contributions. The maximum catch-up contribution for 2006 is $5,000; while the IRS annual elective deferral limit for "regular" TSP contributions will be $15,000. Catch-up contributions will automatically stop with the last pay date in the calendar year or upon reaching the maximum catch-up dollar limit for the year, whichever comes first. Because the IRS annual elective deferral limit for catch-up contributions changes each year, participants must submit a new election each year. Civilian -Enrollments submitted between Dec.11 to 24 will be effective Dec. 25, with the first contribution deducted from their Jan. 13 pay. Subsequent enrollments will be effective at the beginning of the next pay period. -When making a contribution election, employees need to designate a whole-dollar amount to contribute each pay day rather than the annual maximum of $5,000. Employees should not designate an amount that exceeds their net pay or payroll will not withhold any TSP contributions. Employees wanting to spread their contributions evenly over the year will divide their total contribution (up to the $5,000 maximum) by the number of pay dates remaining in the year. There are 26 pay dates in 2006 for employees who submit their election Dec. 11 to 24. -Eligible Air Force-serviced civilian employees may enroll for catch-up contributions via the Employee Benefits Information System Web application or the BEST phone system. EBIS is at: www.afpc.randolph.af.mil/afpcsecure/default.asp or through the Air Force Portal at www.my.af.mil. -Employees may reach the BEST phone system by dialing toll-free (800) 616-3775. Overseas employees need to dial a toll-free AT&T direct access number for the country they are located in, then (800) 616-3775. When the phone system answers, press 2 for Air Force-serviced civilian employee, then 2 again for BEST benefits and entitlements, and follow the prompts. The AT&T access numbers can be found at: www.business.att.com/bt/dial_guide.jsp. -Additional information on the TSP Catch-Up contribution program is available on the BEST Web site at www.afpc.randolph.af.mil/dpc/best/menu.htm under "Thrift Savings Plan," and the TSP Web site at www.tsp.gov. Military -Catch-up contributions can be made at local military personnel flights, and finance offices by filling out a Form TSP-U-1-C.