Federal retirement accounts will now track gains and losses on tiny late payments

The US Federal Retirement Thrift Investment Board proposes to track gains and losses on late payments, makeup contributions, and loan payments even when the amount is less than $1.00. This means that even very small discrepancies in federal employee retirement accounts will now be accurately accounted for.

Previously, if a late payment or contribution to a federal employee's Thrift Savings Plan (TSP) was less than a dollar, the system would not calculate any gains or losses on that amount. This meant that small errors or delays could lead to minor, uncorrected discrepancies in retirement savings. The change ensures that every penny is accounted for, potentially preventing small, compounding errors over a career.