The 2021 Limits for TSP Investments Will Remain Unchanged, by Dennis Snoozy

The standard maximum elective deferral contributions limit to TSP accounts will remain unchanged for 2021. The amount for 2020, which is $19,500, will also be the limit for next year. Similarly, the catch-up limit for individuals aged 50 and above will also remain unchanged at $6,500. The catch-up amount was set-up to enable employees close to retirement to save more to their TSP for the year.

No separate election will be required for individuals eligible to make catch-up contributions. Once they’ve maxed out their standard limit, any other contributions will spill over and be automatically designated as catch-up contributions. This is, however, not the case for 2020. So anyone making catch-up contributions will still need to elect them specifically.

The standard contribution and catch-up amounts are for personal contributions only. It doesn’t include employees’ contributions under the FERS or transfers made by previous employers into the Thrift Savings Plan from retirement savings accounts. 

For persons investing in the traditional tax-deferred and Roth pre-taxed accounts, each limit applies to the combined totals for both account types.

The figures are set by the IRS and are adjusted for inflation, just like 401(k) and other employer-sponsor retirement plans. Inflation did not rise high enough to trigger an adjustment for either.