JOINT BASE SAN ANTONIO-RANDOLPH, Texas — The Internal Revenue Service has announced increased limits for 2015 Thrift Savings Plan contributions.
“The maximum contribution amount for traditional and/or Roth TSP will be $18,000; this is an increase from the elective deferral limits of 2013 and 2014, which was $17,500,” said Erica Cathro, an AFPC Human Resources Specialist. “Additionally, the maximum amount of 2015 catch-up contributions is $6,000, which is an increase from the $5,500 elective deferral limit for calendar years 2013 and 2014.”
Catch-up contributions are additional tax-deferred contributions and are separate from regular TSP contributions. For those who are eligible, catch-up contributions provide a way for individuals to secure their retirement, especially for those who begin investing later in their careers.
To be eligible for catch-up contributions, civilian and military employees must be 50 or older in the year in which the first deduction from pay occurs. They must also be in a pay status and be able to certify they will make, or have made, the maximum “regular” employee contributions of $18,000 to a TSP or other eligible account by the end of 2015.
TSP contributions stop when an employee’s contributions reach the annual maximum limit and will automatically resume the next tax year if the employee is still enrolled in TSP.
“This is especially important to employees under the Federal Employees Retirement System because once employee contributions stop, agency matching contributions will also stop,” Cathro said.
For detailed information on TSP and other personnel issues, go to myPers, select “Search All Components” from the drop down menu and enter knowledge article number “23799” in the search window. Air Force retirees who do not have a myPers account can request one at www.retirees.af.mil/shared/media/document/AFD-120510-068.pdf.