The Internal Revenue Code places specific limits on the amount you can contribute to employer-sponsored plans like the Thrift Savings Plan (TSP) each year. The IRS calculates these Thrift Savings Plan contribution limits annually based on cost-of-living indexes. The IRS has updated this calculation for next year and the TSP has announced its 2023 annual limits:
- Elective deferral limit for 2023 is $22,500. This is an increase of 9.8% from the 2022 limit.
- Age 50 or Over Catch-Up limit is $7,500. This is an increase of 15.4% from the 2022 Catch-Up limit.
To be eligible to contribute to make catch-up contributions, an employee must be at least 50 years of age or will become age 50 during 2023 and be contributing the maximum amount ($22,500) to their civilian or uniformed services TSP account and/ or an equivalent employer plan (such as a 401(k), 403(b), or 408(k)(6) plan). Additional information on TSP deferral limits can be located here: 2023 Contribution Limits.
For employees wishing to maximize their contributions throughout the year, it is recommended that they spread those contributions equally across all 26 pay periods. The 26 pay dates for calendar year 2023 begin with the pay period starting on Sunday, December 18, 2022, and is paid on Friday, January 6, 2023. Therefore, to maximize 2023 TSP contributions, employee elections must be effective on December 18, 2022. Please reach out to your Human Resources Worklife Programs Team with any questions. Changes to TSP contributions can be made through MyPay or by submitting a TSP-1 form to HR.
For the most current information on TSP, please visit TSP’s website at Home | The Thrift Savings Plan (TSP).