2024 Contribution Limits
The Internal Revenue Service has announced theThrift Savings Plan(TSP) elective deferral limit for 2024 will increase to $23,000 per year.
You may enroll in the TSP program or make contribution changes at any time; however, if you wish for your contribution deductions to begin the first pay date in 2024, youmust make your TSP election effective for pay period 26(December 17, 2023, through December 30, 2023), which has a pay date of January 8, 2024.
Don’t miss out on matching contributions! In 2024, there will be 26 pay dates so employees should plan contributions accordingly. Federal Employees Retirement System (FERS) employees whose contributions reach the IRS elective deferral limit before the last pay date of the year will not receive all the matching contributions to which they are entitled.
Calculating Contributions
FERS employees who wish to receive Agency Matching Contributions throughout the 2024 tax year should limit bi-weekly contributions to $884.61 ($23,000/26 = $884.61). This is the amount employees may elect to contribute each pay period to maximize contributions for 2024.
Employees who want to maximize the 2024 contribution using less than 26 pay periods can just divide the remaining number of pay periods in the tax year into $23,000 (for example, $23,000/25 = $920.00). Please note, you will have to round up to the next whole dollar.
Catch-up Contributions
Any participant who will be aged 50 or older in 2024 can also contribute up to $7,500 in additional catch-up contributions if regular contributions for the year are expected to reach the $23,000 limit. Your catch-up contributions will be in addition to the 2024 TSP regular contribution limit, which means employees can contribute up to $30,500 in 2024.
To maximize the catch-up contribution amount of $7,500 for 2024, employees will need to contribute an additional $288.46 per pay period ($7,500/26 = $288.46). If you are eligible and would like to maximize the contribution of both the deferral limit and the catch-up contribution, you would need to make an election of $1,173.07 per pay period ($30,500/26 = $1,173.07). Elections must be made starting in pay period 26 of 2023 to take effect during the first pay period of 2024.
How to Enroll or Change Contributions
CBP employees may enroll in TSP or make contribution changes at any time. To enroll in the TSP program or make contribution changes, use theCBP Employee Personal Page (myEPP). Once you gain access in myEPP, click on “TSP” then “Self-Service” and follow the instructions.
Additional Information
For more information regarding TSP’s contribution limits, visitwww.tsp.gov, or call the TSP ThriftLine at 877-968-3778 or TDD at 877-847-4385.
For assistance in calculating contribution amounts, use theTSP Calculatoron theContribution Limitspage.
