IRS Announces the 2021 Annual Contribution Limits for TSP and IRA

The Internal Revenue Service (IRS) recently announced the maximum amount that federal employees can contribute to the Thrift Savings Plan for 2021. According to the press release, the TSP annual limit will remain unchanged for next year. The maximum contribution limit for 2020 was $19,500 and will remain so for 2021.

The catch contribution limit for employees aged 50 and above will also remain unchanged at $6,500. The contribution limit for IRA (individual retirement accounts) for the year 2021 also remains unchanged at $6,000. The catch-up contribution for persons aged 50 and above will also remain at the 2020 amount of $1,000 – having not been subjected to an annual cost-of-living adjustment.