JOINT BASE ANDREWS, Md. -- Each year the Internal Revenue Service (IRS) places limits on the dollar amount of contributions that can be contributed to the Thrift Savings Plan(TSP). The limit for regular contributions (traditional and/or Roth) is referred to as the elective deferral limit, Internal Revenue Code (IRC) Section 402(g). For 2020, the elective deferral limit is $19,500, which is an increase from calendar year 2019. Once you reach the IRS limit, your contributions will automatically stop and will resume the next tax year if you are still enrolled in TSP. If you are a Federal Employees Retirement System (FERS) employee, it is very important that you do not reach the elective deferral limit before the end of the year because once your contributions stop, agency matching contributions will also stop.
If you are age 50 and older, you are eligible to make Catch-Up contributions. Catch-Up contributions are additional tax-deferred contributions to your TSP account. Catch-Up contributions are in addition to your regular contributions and have their own annual limit. For 2020, the annual limit for Catch-Up contributions is $6,500, which is an increase
from calendar year 2019. Deductions for catch-up contributions will automatically stop when you reach the annual limit, or the last pay date of the calendar year, whichever comes first. A Catch-Up contribution election
must be submitted each year you wish to participate.
For more information regarding regular TSP or Catch-Up contributions, visit myPers https://mypers.af.mil/app/answers/detail/a_id/23799/kw/23799 to review the TSP program page.