November 4, 2020

Making Progress With Each Step

The elective deferral limits for 2021 remain unchanged from 2020.

Participants can contribute up to $19,500 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 also remains unchanged, at $6,500 for those 50 and older.

More information can be found on the site here.

Health Savings Account (HSA) contribution limits for 2021 are $3,600 for an individual with coverage under a qualifying high-deductible health plan (HDHP), and $7,200 for an individual with family coverage under an HDHP. Those 55 or older can make additional catch-up contributions of $1,000 per year.

For Flexible Spending Accounts (FSAs), the maximum contribution limit is $2,750, with a maximum carryover of $550. (Note that an HSA does not have a maximum carryover limit - HSA investors can keep and grow those funds over time.)

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 Bruno Nascimento on Unsplash

Related topics: tsp-updates hsa roth-tsp