Despite early forecasts that the Thrift Savings Plan (TSP) would let down investors, the catastrophic events predicted to incapacitate the stock market did not come to fruition. Instead, TSP performance had high returns for its investors, with two stock funds gaining more than 25%, and one fund skyrocketing 10% in December. This positive performance has been largely credited to the stocks of a number of large companies, called the “Magnificent 7,” which includes Apple, Microsoft, Amazon, Tesla, Alphabet, Nvidia, and Meta Platforms. Thanks to these stocks, which contributed to about 2/3rds of the S&P 500 gains, the TSP C Fund saw very favorable impacts. The final finishes for the core TSP stock funds are:
- C Fund: 26.25%
- S Fund: 25.30%
- I Fund: 18.38%
Looking into 2024, the pay schedule reverts to 26 pay periods, unlike the 27 in 2023, and the annual maximum contribution has increased, so your ability to contribute the maximum amount into your TSP in 2024 will look different. The new annual maximum for TSP is $23,000 for those under 50, and for those over 50, catch-up contributions remained at $7,500. So to max out your TSP under age 50, you would contribute $884.60 per pay period, and for catch- ups, it would be $288.46 per pay period.
