TSP Contribution Limits 2026: Maximize Your Retirement Savings

Are you keeping up with the latest TSP contribution limits? If you’re a federal or postal employee, these numbers matter more than you think. Every year, the IRS sets new limits on how much you can contribute to your Thrift Savings Plan (TSP) — and knowing them can help you make smarter decisions about your retirement savings. Whether you’re just getting started or getting close to retirement, understanding this year’s TSP limits can mean the difference between falling short or retiring with confidence.

2026 TSP Contribution Limits — What’s New

• Standard contribution limit: For 2026, you can contribute up to $24,500 to your TSP account.

• Catch‑up contributions (age 50+): If you are 50 or older, you can add an extra $8,000 — meaning a total possible contribution of $32,500.

• “Super” catch-up (age 60–63): If you are between 60 and 63, the extra contribution limit is $11,250, which brings your total potential TSP contribution up to $35,750.

These limits apply whether you contribute via Traditional (pre-tax) TSP or Roth (after-tax) TSP — or some mix of the two.

Why These Limits Matter for Feds and Postal Employees

The TSP remains one of the best retirement savings vehicles for federal and postal employees. Here’s why making full use of these limits is wise:

• Tax benefits and growth potential. Contributions are tax‑deferrable (Traditional) or tax‑free at withdrawal (Roth), depending on which you choose.

• Maximizing employer matching (for FERS employees). If you’re under FERS, contributing consistently through the year helps you get the full matching benefit. Many agencies match part of your first 5%.

• More savings power, especially approaching retirement. If you are 50 or older — or about to turn 60 — catch-up or “super” catch-up contributions give you a big boost just when it counts.

How to Take Advantage — Smart Moves You Can Make

1. Review and update your pay‑period contribution rate

If you want to hit $24,500 in a year and you are paid biweekly (26 pay periods), that works out to roughly $943 per pay period. 
If you qualify for catch-up or super catch-up, adjust accordingly (for example, about $1,250 per pay period to reach $32,500).

2. Choose between Traditional and Roth — or mix them

Traditional TSP saves you taxes now because contributions are pre-tax. Roth TSP means you pay taxes today but enjoy tax-free withdrawals later. The best choice depends on your tax situation now vs. retirement.

3. Don’t wait until year-end

If you front-load your contributions (i.e. contribute as much as possible early in the year), you risk missing out on employer matching if you hit the cap too soon. Spreading contributions evenly across the year is smart — especially if you want full match.

4. Near retirement? Use catch-up wisely

If you’re 50+, or especially 60–63, consider boosting your TSP contributions — that extra “super catch-up” can make a big difference in compounded retirement savings.

What Changed — And Why You Should Care

The increase in standard limits (from previous years) and higher catch-up allowances reflect cost‑of‑living adjustments and recent legislation aimed at helping retirement savers.

Starting 2026, the standard TSP limit went up by $1,000 (to $24,500).

These changes give you more room for tax‑advantaged savings — a chance many TSP participants should take full advantage of.

Common Mistakes to Avoid

• Not updating your contributions: Many federal employees leave their savings rate unchanged — even after limits increase.

• Maxing out too early: This can lead to missing employer matching for the rest of the year.

• Overlooking catch-up if eligible: If you qualify, skipping catch-up is leaving “extra free retirement money” on the table.

• Not deciding between Traditional vs Roth carefully: The wrong mix could mean paying more taxes than needed now — or later.

Your Next Steps

1. Log in to your payroll or TSP election portal. Adjust your contribution rate so you spread savings evenly through the pay periods.

2. If you’re age 50 or older — especially 60–63 — bump up your savings using catch-up or super catch-up.

3. Review whether Traditional or Roth contributions suit your tax and retirement situation.

4. Bookmark this limit guide and check back each year — IRS/TSP limits change regularly.

Final Thoughts

TSP contribution limits may sound like numbers on a page — but for federal and postal employees, they represent real opportunity. Whether you’re early in your career or fast approaching retirement, maximizing your TSP contributions every year can mean a more secure, comfortable future.

Want help choosing between Traditional and Roth TSP, or figuring out the best contribution rate for you? Contact us at The Benefit Coordinators — we’ve helped many feds and postal workers make smart, confident retirement decisions.

Take action now. Your future self will thank you.