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Age 50-plus federal workers should be able to slip an extra $1,000 tax-deferred dollars into their Thrift Savings Plan accounts this year and another $2,000 next year. But it will take an act of Congress---literally---for the "catchup" payments, which are already allowed in some private sector 401k plans, to be authorized for the federal 401k program. The catchup contributions, which would grow to $5,000 per year in 2006 and thereafter, are part of the Pension Reform Act signed earlier this year by the President. But while that law leaves it up to private sector 401k plans to participate or not, Congress must approve the change for the TSP. Federal and postal lobbyists hope that over the spring recess a large group of House and Senate members have decided to co-sponsor the "catchup" bills by Representatives Constance Morella (R-Md.) and Senators Daniel Akaka (D-Hawaii) and John Warner (R-Va.). The Federal Retirement Thrift Investment Board and federal agency payroll offices will have tables ready once the catchup contributions are okayed, so that employees can have the additonal money deducted from their paychecks. The catchup contributions will be in additon to the 7 and 12 percent salary contribution limits on TSP contributions and won't count against the $11,000 IRS limit on individual contributions to 401k plans. Next step is for Congress (whose members would also benefit) to get on the ball. SCHOLARSHIP MONEY Reader/listener Gail D. Witcher asks about scholarships for federal workers, retirees and their children and grandchildren. The biggest private organization giving out scholarships is the Federal Employee Education & Assistance Fund. FEEA is financed by donations from federal workers, retirees and grants from organizations like GEICO. The deadline for scholarships for feds and their kids for the 2002-2003 school year was last month. But you can start planning for the next round. For details click here. NARFE/RETIREE SCHOLARSHIPS Members of the National Association of Retired Federal Employees whether retired or still working for Uncle Sam can also apply for scholarships from FEEA this month and in early May. The scholarships are generally for $1,000 for the school year. The scholarships are for the children and grandchildren of NARFE
members. For details about NARFE membership click here GOT AN IDEA, TIP OR COMMENT? To reach me by email: mcausey@federalnewsradio.com
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