TSP Annual Contributions Limits - 2019

The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers United States Armed Forces Servicemembers and Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans.

 

By participating in the TSP, these employees and servicemembers can save part of their income for retirement, receive matching agency contributions, reduce their current taxes while building and managing their retirement wealth.


The Internal Revenue Code (IRC) places limits on the dollar amount of contributions you can make to the TSP. The Internal Revenue Service (IRS) calculates them every year and they can change annually.

 

The TSP announces the limits on the TSP website and the ThriftLine as well as through its various publications when the TSP Annual Contribution limits become available.

 

Here are the annual contribution limits for 2019.
 

 

Tax Planning and Retirement Planning Notes

*Roth TSP is similar to a Roth 401(k), not a Roth IRA. There are no income limits for Roth TSP contributions.

**Catch-up contributions are only available to persons aged 50 and up.

Elective Deferral Limit of $19,000 is the limit employees can defer from their paychecks. It applies to Traditional and Roth TSP accounts. They share the same limit IRC §415 (c). You can not contribute $19,000 to each. This includes your base pay, special pay, and bonuses. 


Annual Addition Limit of $56,000 is the maximum amount you can put into your Thrift Savings Plan from all sources. Your catch up contributions are extra. Not included here.

Combat Zone: The great news here is that deployed (Combat Zone) military members can exceed the $19,000 annual Elective Deferral Limit and contribute up to the $56,000 limit. Roth -TSP should be the retirement vehicle when using this strategy. This way...Tax Free stays Tax Free when Income is taken from Roth TSP. 

Additional Tax References and Resources

 

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