The Internal Revenue Service today announced cost-of-living adjustments which

determine the 2010 Thrift Savings Plan (TSP) contribution limits.

The TSP maximum contribution limit will remain unchanged for

2010 at $16,500.  Also, the 2010 TSP Catch-Up maximum contribution limit will

remain at $5,500.

According to the IRS, the limitations that are adjusted by reference to

Section 415(d) will remain unchanged for 2010 because the cost-of-living index

for the quarter ended September 30, 2009, is less than the cost-of-living index

for the quarter ended September 30, 2008, and, following the procedures under

the Social Security Act for adjusting benefit amounts, any decline in the

applicable index cannot result in a reduced limitation.  For example, the

limitation under Section 402(g)(1) on the exclusion for elective deferrals

described in Section 402(g)(3) will be $16,500 for 2010, which is the same

amount as for 2009.  This limitation affects elective deferrals to Section

401(k) plans and to the Federal Government's Thrift Savings Plan, among other

plans.

For more information go to:
href="http://www.irs.gov/newsroom/article/0,,id=214321,00.html">http://www.irs.gov/newsroom/article/0,,id=214321,00.html