Below are the 2024 IRS limits and additional information to keep you informed. The Catch-up limit is unchanged from 2023.
Select an option and take a look.
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What it means
All ages
This limit applies to the combined total of traditional and Roth contributions. For uniformed services members, this does not apply to traditional contributions from combat-zone pay.
What to know
See AlsoThrift Savings Plan ContributionsAverage Account Balances Take a HitWhat Are Catch-Up Contributions Really Worth? | Retirement Plan AdvisorsTSP Performance Positive In January: S Fund Up 10.82% | FedSmith.comContributing from your pay before taxes allows your money to grow tax-deferred until you withdraw it. If you make Roth (after-tax) contributions, those contributions could be “qualified” and tax free at retirement. Knowing this limit helps you decide how much to put away each year.
Additionally, this limit does not include matching contributions. If you’re eligible for an agency or service match, you’re actually saving more.
What to do
If you’re not maxing out your contributions, consider increasing your contribution amount each chance you get to help reach your retirement savings goals. You might be surprised how big of a difference a small increase can make.
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What it means
Age 50 and over
If you’re turning 50 or older and exceed the IRS elective deferral (or annual additions) limit, then your contributions will automatically start counting toward the IRS catch-up limit. Just add any contributions toward the catch-up limit in the same place as your other TSP contributions.
See AlsoTSP LoansWhat to know
If you’re 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 one.
If you’re a uniformed services member and enter a combat zone, your contributions toward the catch-up limit must be Roth. (The TSP cannot accept traditional tax-exempt contributions toward the catch-up limit.) You also cannot contribute toward the catch-up limit from incentive pay, special pay, or bonus pay.
What to do
Whether you’re trying to boost the retirement savings you already have, or you’ve recently started saving, consider making contributions toward the catch-up limit to save more.
You’ll thank yourself later.
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What it means
All ages
The annual additions limit is the total amount of all the contributions you make in a calendar year. This limit is per employer and includes money from all sources: employee contributions (tax-deferred, after-tax, and tax-exempt), Agency/Service Automatic (1%) Contributions, and Agency/Service Matching Contributions. It does not include catch-up contributions.
What to know
The annual additions limit affects mostly members of the uniformed services who can exceed the annual elective deferral limit. The excess contributions go into the traditional portion of your account from tax-exempt pay earned in a combat zone.
What to do
Even if you don’t reach the annual additions limit, keep it in mind when deciding how much you’ll contribute to your TSP account to avoid penalties.
