Bill: Unused leave could go into TSP accounts - Navy News | News from Afghanistan & Iraq - Navy Times

Bill: Unused leave could go into TSP accounts

Lawmakers introduced a bill Wednesday to allow retiring Thrift Savings Plan participants to deposit some or all of the cash value of their unused annual leave in their accounts.

The IRS in September began allowing private-sector employees to roll the cash value of unused vacation and sick leave time into their 401(k) accounts. This bill would allow TSP participants to do the same for vacation time, but it would not allow service members or federal employees to convert sick leave.

Unused leave deposits would count toward annual contribution limits set by the IRS. Employees under 50 years of age are capped at $16,500 per year; employees who are 50 or older can contribute an additional $5,500 on top of that.

Reps. Stephen Lynch, D-Mass., and Jason Chaffetz, R-Utah, are co-sponsors of HR 4865, the 2010 Federal Employees and Uniformed Services Retirement Equity Act.

The fact that the bill is bipartisan “means that we can get something done,” Tom Trabucco, external affairs director of the Federal Retirement Thrift Investment Board, said Monday after the board’s monthly meeting in Washington.