Getting Easier...Catch-Up Contributions to TSP
Starting in January 2021, the catch-up process is easier. If you are turning 50 or older, you will no longer need to make two separate elections each year in order to take advantage of catch-up contributions.
Instead, your contributions will automatically count toward the IRS catch-up limit if you meet the elective deferral limit and keep saving. If you are eligible for an agency or service match, contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of your salary. Your election will carry over each year unless you submit a new election.
For 2020 catch-up contributions, you do still need to complete the current process and make a separate election.
Go to https://www.tsp.gov/making-contributions/contribution-types/ for:
1. An important note to members of the uniformed services
2. To check current contribution limits to make sure you are on track this year.