TSP contribution limits unchanged in 2016

The limit federal employees can contribute to their Thrift Savings Plan will remain at the same level for tax year 2016, according to an Oct. 21 announcement from the Internal Revenue Service.

IRS announced cost-of-living adjustments last week impacting the dollar amounts all taxpayers can make to their pension plans and retirement accounts. While the slight increase in the cost-of-living index triggered adjustments in some limitations, the increase was not enough to meet the statutory...

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The limit federal employees can contribute to their Thrift Savings Plan will remain at the same level for tax year 2016, according to an Oct. 21 announcement from the Internal Revenue Service.

IRS announced cost-of-living adjustments last week impacting the dollar amounts all taxpayers can make to their pension plans and retirement accounts. While the slight increase in the cost-of-living index triggered adjustments in some limitations, the increase was not enough to meet the statutory requirements of many others, including the limitations for feds’ TSP accounts.

The elective deferral (contribution) limit federal employees make to their TSP will remain at $18,000.

The limit will stay at $6,000 for federal employees aged 50 and over making a catch-up contribution to their TSP account.

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