drazencito
Junior Member
What is the name of your state (only U.S. law)? Maryland
I have been working for the FAA for over 20 years. In 2005 I left to fo to work for an international organization. To incentivize this transfer the FAA has a relocation incentive allowance where:
1. They guarantee return rights to the same or higher level job from which I left.
2. They will make up any difference in pay if I made less money while I was gone,
3. They will reimburse me for child education expenses, rent and utilities paid abroad, and finally,
4. I would be entitled to make TSP contributions for as much as I would have been allowed to make had I stayed employed.
Here is the issue. I am now back in the FAA and they are computing my relocation incetive allowance (RIA) for the 5 years I was gone (a significant amount). This would be paid as a lump sum. I would like to take as much as I can from that allowance and apply it to the TSP in order to delay paying taxes on that lump sum. The FAA is telling me that I cannot do that because the rule states that the contribution to TSP can only come from future salary.
Question: My argument is that the lump payment is "future salary" and therefore eligible to extract the TSP payment from?
TSP Bulletin 00-13.. addresses this in Part II, C, 3
I have been working for the FAA for over 20 years. In 2005 I left to fo to work for an international organization. To incentivize this transfer the FAA has a relocation incentive allowance where:
1. They guarantee return rights to the same or higher level job from which I left.
2. They will make up any difference in pay if I made less money while I was gone,
3. They will reimburse me for child education expenses, rent and utilities paid abroad, and finally,
4. I would be entitled to make TSP contributions for as much as I would have been allowed to make had I stayed employed.
Here is the issue. I am now back in the FAA and they are computing my relocation incetive allowance (RIA) for the 5 years I was gone (a significant amount). This would be paid as a lump sum. I would like to take as much as I can from that allowance and apply it to the TSP in order to delay paying taxes on that lump sum. The FAA is telling me that I cannot do that because the rule states that the contribution to TSP can only come from future salary.
Question: My argument is that the lump payment is "future salary" and therefore eligible to extract the TSP payment from?
TSP Bulletin 00-13.. addresses this in Part II, C, 3