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Projections from consultants released this month predict that Thrift Savings Plan participants may be able to contribute more to their retirement savings next year.
The 2024 TSP contribution limit for the will increase by $500 from $22,500 in 2023 to $23,000 next year according to Mercer, a financial services consulting firm.
This would be a 2.2% increase over last year, and will be the third year in a row that the contribution limit increased.
Mercer’s estimates are determined using the tax code’s cost-of-living adjustment and rounding methods, the CPI-U through July, and estimated CPI-U values for August and September.
“The 2024 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2022 to the third quarter of 2023,” Mercer said. “Only the catch-up contribution limit, which has a relatively large rounding value, is expected to stay the same next year.”
The IRS usually announces official limits for the coming year in late October.
Maximum TSP Contribution Limit in 2023
The limit on contributions in 2023 by employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan was increased to $22,500, up from $20,500 for 2022.
The catch-up contribution limit limit in 2023 for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan was increased to $7,500, up from $6,500.
Therefore, participants in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan who are 50 and older can contribute up to $30,000 in 2023.