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Thrift Savings Plan And 457?

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Perhaps the TSP folks could engage a retirement plan legal research firm to research whether or not TSP deferrals must be aggregated with 457(b) deferrals.

 

For example, a legal research firm called the Technical Answer Group (TAG, which is associated with CCH at www.tagdata.com) has determined that deferrals into the TSP are not required to be aggregated with 457(b) deferrals.

 

FWIW (for what it's worth)

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Guest Sierra

 

 

From the website: at http://www.tsp.gov/faq/faq6.html#sub8 (you'll have to type that in the web address box to get there)

 

8. How much can I contribute?

 

skip to 2nd paragraph for brevity sake:

 

If you have another eligible employer plan described under sections 401(k) or 403(b) of the Internal Revenue Code, or if you are a member of the Ready Reserve or National Guard and have a civilian TSP account, the total of all your contributions to all of your plans cannot exceed the Internal Revenue Code's elective deferral limit. However, if you also participate in a Section 457 plan, your contributions to the TSP are not limited by any of your contributions to your section 457 plan.

 

 

John: And this is why, along with the contradictions on pp 4 and 7 of publication TSP-44, I placed two calls into the TSP office and each time the supervisor said 457(b) contributions are treated the same as contributions to 401k and 403(b). Shall I place a third call?

 

Joel

 

 

Joel:

 

Instead of placing phone calls to a call center why dont you spend some time researching the IRC and the regulations to demonstrate how the TSP is the only plan subject to the $15,500 limit for elective deferrals under Reg 1.402(g)-1 (see IRS Pub 525, P 8-9) which must be aggregated with contributions to a 457b plan, even though the regulation does not provide for aggregation of 457 deferrals with deferrals under 402(g). You could also explain why aggregation of 457 deferrals with the TSP is required in the absence of such a requirement under IRC 457©.

 

 

John:

 

Your frustration is noted. For the record you did not do any kind of research on this matter after your initial post. It was only after I personally asked you to get involved did you move from the stands to the playing field.

 

Have said that, most TSP participants are not trained in legal research and, therefore, would follow the information as given by the two TSP supervisors, no? One supervisor suggested that I write a letter to the TSP so that Form 44 may be changed (one way or the other) in time to be included in the 2009 version of the Form.

 

May I suggest inasmuch as you have already done the research you write the letter.

 

Joel

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Yes, it may be worthwhile to do so. I assume their decisions on how to write their forms and the accompanying instructions will still go through their own internal review process before making a such a change. I'm no "Chief-Civil Service Leader", so who knows if they will listen to my comments.

 

So, are you saying that you now agree that 457(b) deferrals are not required to be aggregated with TSP deferrals?

 

 

P.S. just for Joel (sierra):

 

For the record you did not do any kind of research on this matter after your initial post. It was only after I personally asked you to get involved did you move from the stands to the playing field.
Okay, for the record, my initial post stated: "When I return to the office, I will try to look this up to clarify." I then returned on March 25th, responded, and researched, and added research results on the 26th, also as promised. But of course, it was clearly your personal prompting that encouraged me to fulfill these stated promises (is that what you're saying?)

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Guest Sierra

Yes, it may be worthwhile to do so. I assume their decisions on how to write their forms and the accompanying instructions will still go through their own internal review process before making a such a change. I'm no "Chief-Civil Service Leader", so who knows if they will listen to my comments.

 

So, are you saying that you now agree that 457(b) deferrals are not required to be aggregated with TSP deferrals?

 

 

P.S. just for Joel (sierra):

 

For the record you did not do any kind of research on this matter after your initial post. It was only after I personally asked you to get involved did you move from the stands to the playing field.
Okay, for the record, my initial post stated: "When I return to the office, I will try to look this up to clarify." I then returned on March 25th, responded, and researched, and added research results on the 26th, also as promised. But of course, it was clearly your personal prompting that encouraged me to fulfill these stated promises (is that what you're saying?)

 

 

That is exactly what I am saying. Assuming you do in fact write the letter---I trust you will share your correspondence with all of us.

 

Joel

 

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