TSP contribution limits for 2011 explained

Tom Trabucco, director of external affairs, Federal Retirement Thrift Investments Board

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Contribution limits to your Thrift Savings Plan account will most likely stay the same in 2011, said Tom Trabucco, the director of external affairs at the Federal Retirement Thrift Investment Board, in an interview with the DorobekINSIDER.

Contribution limits are calculated every year by the Internal Revenue Service. IRS has not yet set the limits for 2011, but limits are usually tied to increases in social security or civil service retirement benefits. Since neither have increased, the TSP contribution limits are unlikely to increase as well, Trabucco said.

“I would be very surprised if there were an increase in the IRS limits this year, which means they would stay right where they are,” Trabucco said.

The contribution limit for 2010 was $16,500, and 5,500 in catch-up contributions. The catch-up allows people who did not contribute the maximum to their TSP or 401k accounts earlier in their career to put in a little more after they reach age 50.

Trabucco said the catch-up is a “hurry-up offense on your way to get to that complete retirement benefit.”

The new automatic enrollment program may make catch-up obsolete in the future. Started in August, feds are automatically enrolled to contribute three percent to the G Fund.

2011 budget identical to 2010 budget

FTIB passed its annual budget at its October meeting. The budget for 2011 is at the same level as the 2010 budget of $131 million, Trabucco said.

Last year FTIB was underbudget, spending $119 million.

“We weren’t happy about that,” Trabucco said. “We planned on accomplishing more.”

The board will revisit the budget in May, he said.

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THRIFT SAVINGS PLAN TICKER

Jan 20, 2022 Close Change YTD*
L Income 23.1883 -0.0487 5.42%
L 2025 11.9651 -0.0472 9.75%
L 2030 42.1747 -0.2353 12.37%
L 2035 12.6589 -0.0777 13.43%
L 2040 47.8799 -0.3207 14.51%
L 2045 13.1065 -0.0942 15.40%
L 2050 28.7010 -0.2205 16.34%
L 2055 14.1138 -0.1333 19.90%
L 2060 14.1136 -0.1332 19.90%
L 2065 14.1134 -0.1332 19.90%
G Fund 16.7510 0.0008 1.38%
F Fund 20.4699 0.0225 -1.46%
C Fund 67.7127 -0.7512 28.68%
S Fund 74.7229 -1.1189 12.45%
I Fund 38.6721 -0.1973 11.45%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.