Accidental TSP payments sent out last week

The Thrift Savings Plan accidentally sent out payments to nearly 10,000 participants last week, and now is asking for the money to be returned.

The Federal Retirement Thrift Investment Board’s Tom Trabucco told the Washington Post that a processing error was to blame, and resulted in payments to some participants as high as $10,000.

Approximately 9,700 of the TSP’s 4.4 million participants received notices and checks as part of minimum distributions,...

READ MORE

The Thrift Savings Plan accidentally sent out payments to nearly 10,000 participants last week, and now is asking for the money to be returned.

The Federal Retirement Thrift Investment Board’s Tom Trabucco told the Washington Post that a processing error was to blame, and resulted in payments to some participants as high as $10,000.

Approximately 9,700 of the TSP’s 4.4 million participants received notices and checks as part of minimum distributions, which is what participants receive at the age of 70 ½. Trabucco said that participants had been notified about the error, and would be given directed as to how to return the money. However, participants who received checks are not required to return the money; if they do choose to keep it though, they will be taxed for it.

“It’s their money,” Trabucco told the Post.

Trabucco spoke with the DorobekINSIDER recently about the “very postive” TSP returns in 2010.

THRIFT SAVINGS PLAN TICKER

May 25, 2022 Close Change YTD*
L Income 22.6163 0.0457 -3.32%
L 2025 11.4047 0.0389 -6.04%
L 2030 39.2730 0.1883 -8.58%
L 2035 11.6917 0.0617 -9.48%
L 2040 43.8752 0.2521 -10.33%
L 2045 11.9249 0.0736 -11.10%
L 2050 25.9420 0.1706 -11.80%
L 2055 12.5294 0.0961 -13.56%
L 2060 12.5286 0.0961 -13.56%
L 2065 12.5276 0.0961 -13.57%
G Fund 16.8784 0.0014 0.65%
F Fund 19.1400 0.0637 -9.33%
C Fund 60.4217 0.5666 -12.91%
S Fund 63.7477 1.4022 -18.83%
I Fund 34.4312 -0.0204 -12.73%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.