The Thrift Savings Plan, or TSP, has limits on how much you can contribute each year.
These limits are set by the IRS and apply to all federal employees who participate in the TSP. Understanding these limits helps explain how much you can save during your working years and how much income may be available later in retirement.
How TSP contribution limits work
TSP contribution limits cap how much money you can put into your account each year.
The limits apply to:
- Employee contributions
- Both traditional and Roth TSP contributions combined
This means you cannot exceed the annual limit by splitting contributions between traditional and Roth accounts. The total of the two must stay within the limit.
Annual employee contribution limit
Each year, the IRS sets an elective deferral limit for the TSP.
This limit controls how much of your own pay you can contribute to your plan during the year. The dollar amount may change annually.
Once you reach the limit, employee contributions must stop for the rest of the year, even if you continue working.
Catch-up contributions for those aged 50 and older
Federal employees age 50 or older are usually allowed to make catch-up contributions.
Catch-up contributions increase the total amount you can contribute each year beyond the standard employee limit. These contributions are optional and must be elected.
This higher limit can be especially helpful for employees nearing retirement who want to increase their savings.
Government contributions and matching
Government contributions do not count toward the employee contribution limit.
These include:
- Automatic agency contributions
- Matching contributions
Because of this, the total amount added to a TSP account in a year can exceed the employee limit alone.
However, there is still an overall cap on total contributions, which includes both employee and government contributions.
The overall contribution limit
In addition to the employee limit, the IRS sets an overall contribution cap.
This overall limit includes:
- Employee contributions
- Catch-up contributions
- Government contributions
Most employees do not reach this cap, but it can matter for higher earners or those receiving significant agency contributions.
Traditional vs. Roth TSP contributions
TSP contribution limits apply regardless of whether contributions are traditional or Roth. Check out our TSP Roth vs. traditional page to learn about how these two options differ and how taxes are taken.
To see how TSP contributions fit into the broader federal retirement picture, visit our Federal Retirement Benefits Overview, which explains how federal benefits work together in retirement.