Thrift Savings Plan 2023 Contributions

The limits for Thrift Savings Plan (TSP) contributions have increased to $22,500 for 2023 and TSP Catch-Up Contributions have increased to $7,500.

$22,500

Annual Elective Deferral

TSP Elective Deferral Limit

The IRS has announced the 2023 elective deferral limit for the TSP increased to $22,500. This limit applies to the combined total of your tax-deferred traditional and Roth contributions.

To maximize your benefit for 2023, divide the IRS limit of $22,500 over 26 pay periods, which will result in an employee contribution of $865 each pay period. Your current biweekly TSP contribution amounts will automatically carryover from 2022 to 2023 unless you make a change.

$7,500

Catch-up Contributions

Employees who are 50 or older are eligible to make catch-up contributions in any year in which they are 50 or older, including the year in which they are age 49 but will turn age 50 by the end of the year. In 2023, TSP Catch-Up Contributions have increased to $7,500. 

To make catch-up contributions easier for employees, TSP implemented a new method for catch-up contributions called the “spillover” method. Participants will now only enter one TSP election through Employee Express. For those employees who are 50 and older, when you add up $22,500 + $7,500 together, your maximum contribution election is $30,000. You may elect to divide the combined annual contribution limit and the catch-up contribution limit of $30,000 resulting in a biweekly deduction of $1154.

Resources

• Thrift Savings Plan (TSP) Website
• TSP4gov Videos
• If you are looking for TSP forms or publications, please visit https://www.tsp.gov/forms/

Questions?

• If you have questions, please reach out to your servicing HR (Benefits) Specialist.