October 22, 2022

The elective deferral limits for 2023 increased by $2,000 from 2022, the most since the IRS began to index contribution limits to inflation in 2007.

That reprersents an almost 10% increase in the amount TSP participants can contribute to their TSP funds.

Participants can contribute up to $22,500 of their own salary into the Thrift Savings Plan. Most TSP participants will receive a government/agency match of this amount, up to 5% of their salary.

The catch-up contribution limit rose by almost 16%, to $7,500 from $6,500, for those 50 and older.

More information can be found at irs.gov here.

For those interested in investing in a Roth IRA, the limit increased from $6,000 to $6,500. The income phase-out range for contributing to a Roth IRA incrased to between $138,000 and $153,000 for singles and heads of household, and to between $218,000 and $228,000 for married couples filing jointly.

Take a look at “TSP Fund Returns” and “TSP Calculators” to see how higher contributions over time can help to build wealth over the long-run… and order a copy of TSP Investing Strategies for even more wealth-building techniques and strategies!

Photo by Morgan Housel on Unsplash

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