Currently, active participants in the Thrift Savings Plan (TSP) turning age 50 or over in the calendar year can contribute towards the catch-up contribution limit.
This means that if they meet the TSP maximum contribution level (the “elective deferral limit”) and keep saving, their contributions will automatically start counting toward the catch-up limit.
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Increased Catch-Up TSP Contribution Limit in 2025
Effective January 1, 2025, the SECURE Act 2.0, passed in 2022, increases the catch-up contribution limit for TSP participants turning ages 60, 61, 62, or 63 in the calendar year to either $10,000 or 50 percent more than the regular catch-up contribution limit, whichever is greater. The increased amounts will be indexed for inflation after 2025.
The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan is increased to $23,500, up from $23,000 for 2024. According to the IRS, the catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan remains $7,500 for 2025. Therefore, participants in the TSP who are 50 and older generally can contribute up to $31,000 each year, starting in 2025. However, for employees turning ages 60-63 in 2025, the Catch-up limit is $11,250, which equates to a total TSP contribution amount of $34,750.
TSP Participants Who Turn Age 64
TSP participants that increase contributions to meet the higher catch-up contribution limit amount during the years eligible (age 60-63), should be sure to lower the contribution election at the beginning of the year they turn age 64. If they continue contributing at the higher amount when no longer eligible for it, they might reach the lower catch-up limit early and miss out on agency matching contributions for the rest of the year.
More information on TSP contribution limits is here.
How Much Can You Contribute?
The TSP.gov website has an elective deferral calculator which determines the specific dollar amount to be deducted each pay period to maximize your contributions and ensure that participants don’t miss out on agency matching contributions if entitled to them. For TSP participants turning age 60, 61, 62, and 63, this online calculator will account for the additional catch-up contribution amounts.
To access the TSP calculator, go here. Participants will need their most recent leave and earnings statement or pay stub, plus the the number of salary payments remaining for the current year.