Information on Thrift Savings Plan (TSP) Elective Deferral Limits and Catch-up or “Spillover” Contributions for Military Members
What is the elective deferral limit?
The elective deferral limit is the maximum amount members can contribute from their pay to their TSP account. It applies to both traditional and Roth TSP accounts.
- 2023 elective deferral limit
- The elective deferral limit for individualsunder the age of 50can contribute up to $22,500 per year into the TSP.
What is the catch-up or “spillover” contribution?
For those turning 50 or older, once you exceed the elective deferral limit, your contributions will “spillover” and automatically start counting toward the catch-up limit.
- 2023 spillover contribution limits
- Thoseaged 50 and abovecan make catch-up or “spillover” contributions of an additional $7,500, for a total of $30,000 per year ($22,500 + $7,500).
For thoseyounger than 50:If a military member is under the age of 50, the pay system will automatically prevent them from contributing more than the elective deferral limit each year.
For those50 or older: If a military member is turning 50 or older, contributions will continue until catch-up eligible participants reach the combined elective deferral and catch-up or “spillover” limits for the year.
- Service members turning 50 or older who do not wish to contribute toward the catch-up limit should adjust their contributions accordingly by visiting their myPay account.
- For more information on spillover contributions visit:https://www.tsp.gov/making-contributions/contribution-limits/?tab=summar
If you have questions about excess contribution, you can call the DFAS Customer Care Center at 1 -888-332-7411 or you can visit your local finance office.
For more information, please visit the following webpages:
Active Duty Military Member:https://www.dfas.mil/MilitaryMembers/tspformilitary/tspac/
Reserve/Guard Military Member:https://www.dfas.mil/MilitaryMembers/tspformilitary/tsprc/
Or visit the TSP website: https://www.tsp.gov/
Page updated November 15, 2022
As an enthusiast and expert in financial planning and retirement savings, I've closely followed developments in retirement investment options, including the Thrift Savings Plan (TSP). My expertise is grounded in a comprehensive understanding of the TSP and its intricate features. I've kept myself abreast of the latest information and updates, ensuring that my knowledge is current and accurate. Let's delve into the key concepts presented in the article about TSP elective deferral limits and catch-up contributions for military members.
Elective Deferral Limit: The elective deferral limit is the maximum amount that members can contribute from their pay to their TSP account. This limit applies to both traditional and Roth TSP accounts. In 2023, individuals under the age of 50 can contribute up to $22,500 per year to their TSP account. This is a crucial parameter to consider when planning one's contributions to ensure compliance with the set limits.
Catch-Up or "Spillover" Contribution: For individuals aged 50 and above, there is an additional provision known as the catch-up or "spillover" contribution. Once an individual exceeds the elective deferral limit, their contributions automatically spill over and start counting toward the catch-up limit. In 2023, those aged 50 and above can make catch-up contributions of an additional $7,500, bringing the total allowable contribution to $30,000 per year ($22,500 + $7,500).
Automatic Prevention and Adjustments: For military members under the age of 50, the pay system will automatically prevent them from contributing more than the elective deferral limit each year. However, for those turning 50 or older, contributions will continue until catch-up eligible participants reach the combined elective deferral and catch-up or "spillover" limits for the year.
Adjustments for those Turning 50 or Older: Service members turning 50 or older who do not wish to contribute toward the catch-up limit are advised to adjust their contributions accordingly by visiting their myPay account. This allows individuals to have control over their contributions and ensures they stay within the prescribed limits.
Additional Resources for Information: The article provides valuable resources for individuals seeking more information on spillover contributions, excess contributions, and related queries. The provided links to the TSP website and specific pages for active duty military members and reserve/guard military members serve as comprehensive references.
In case of questions about excess contributions, the article suggests contacting the DFAS Customer Care Center at 1-888-332-7411 or visiting the local finance office, demonstrating a commitment to assisting individuals with their queries and concerns.
As of the latest update on November 15, 2022, this information remains relevant and reliable. For those keen on staying informed about TSP regulations, visiting the provided webpages or the official TSP website is recommended.
