Internal Revenue Service Raises Year 2000 Limit on Contributions to Savings Plan

Date: Mon, 25 Oct 1999 15:21:56 -0400
To: "USGS Employees"<distribution>
From: "Leila J. McKamey" <lmckamey>
Subject: Employee Well Being--It's Your Life

(Supervisors, Managers, and Team Leaders:  Please ensure that employees
without access to e-mail receive a copy of this message.)


In Reply Refer To:
Mail Stop 601


MEMORANDUM


To:         All U.S. Geological Survey Employees

From:     Joyce D. Pieritz
               Acting Personnel Officer

Subject: Internal Revenue Service Raises Year 2000 Limit on Contributions
to Savings Plan

The Internal Revenue Service (IRS) has raised the limit on contributions to
tax-deferred savings plans to $10,500 for calendar year 2000.  Currently,
the limit on individual contributions to 401(k) plans is $10,000.  

Federal employees under the Federal Employees Retirement System (FERS) can
contribute up to 10 percent of their salary to the Thrift Savings Plan
(TSP), up to the IRS limit.  Those who contribute up to 5 percent receive
agency matching contributions.  Civil Service Retirement System employees
may contribute up to 5 percent to the TSP, without matching contributions.  

The new limits will only affect those Federal workers who earn $105,000 or
more per year.  Once the IRS ceiling is reached, employee and agency
matching contributions will be suspended.  However, FERS employees will
continue to receive Agency Automatic (1%) Contributions.

More detailed information regarding annual limits on your TSP account can
be found in the TSP Fact Sheet "Annual Limit on Elective Deferrals," which
is available on the TSP Website at http://www.tsp.gov under Forms and
Publications.  Questions regarding your TSP contributions should be
directed to your servicing personnel office.