What is the maximum TSP contribution for 2025?

When should I change my TSP allocation for 2025?

Your election should be effective on December 15, 2024, the first pay period for 2025. Your new election will be reflected on your LES beginning January 3, 2025. Because of TSP “spillover”, you no longer enter a separate TSP Catch-up election. Instead, you enter only one TSP election amount into myPay for 2025.

Can I contribute 100% of my pay to TSP?

You can elect to contribute from 1 to 100 percent of any incentive pay, special pay, or bonus pay (even if you're not currently receiving them)—as long as you elect to contribute at least 1% from your basic pay. You cannot contribute from sources such as housing or subsistence allowances.

What is the maximum contribution limit for 2024?

Highlights of changes for 2024. The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan is increased to $23,000, up from $22,500. The limit on annual contributions to an IRA increased to $7,000, up from $6,500.

Do I still get the 5% match if I contribute all to the Roth TSP?

If a federal employee contributes at least 5% you will receive an additional 4% government matching contribution for a total of 5%. Common misconception! Contributing the max into the Roth TSP will result in losing the 5% government match. At least 5% must be going to traditional TSP to receive the match.

What is the maximum HSA contribution for 2025?

2025 HSA contribution limits

The HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family coverage.

Will TSP automatically stop at limit?

The TSP system will not allow any employee contribution to be processed that will cause the total amount of employee contributions for the year to exceed the annual limit. Your payroll office must ensure that your employee contributions automatically resume the first pay date in the following year.

What is the lifetime gifting limit for 2025?

Lifetime IRS Gift Tax Exemption

If a gift exceeds the $19,000 limit for 2025, that does not automatically trigger the gift tax. For 2025, the IRS allows a person to give away up to $13.99 million in assets or property over the course of their lifetime and/or as part of their estate.

What is the maximum contribution for 2025?

The total contribution limit for 401(a) defined contribution plans under section 415(c)(1)(A) increased from $69,000 to $70,000 for 2025. This includes both employer and employee contributions. The annual elective deferral limit for 401(k) plan employee contributions is increased to $23,500 in 2025.

What happens if I go over the max TSP contribution limit?

If you work for more than one employer in the same calendar year, it's possible to contribute too much and exceed the IRS limits. If you over contribute, you may request a refund of the excess amount from the TSP. For a limited in January each year, we make the Refund Request Form available.

How to maximize your TSP?

What is the TSP contribution limit for 2025?

The § 402(g) elective deferral limit for 2025 is $23,500. This limit applies to the traditional (tax-deferred) and Roth contributions made by an employee during the calendar year.

What is the maximum HSA contribution for 2024?

For 2024, the annual contribution limits on deductions for HSAs for individuals with self-only coverage is $4,150 (increase of $300) and $8,300 for family coverage (increase of $550). There is an additional contribution amount of $1,000 for taxpayers who are age 55 or older.

What are the new 401k rules for 2025?

For 2025, eligible taxpayers can contribute $23,500 to their 401(k) account, up from $23,000 in 2024. The limit on catch-up contributions for 401(k)s in 2025 for taxpayers 50 and older is $7,500 — the same as it is in 2024, bringing the total contribution limit to $31,000 in 2025.

What is the largest TSP balance?

Still, the millionaires have been contributing for an average of about 29 years. The Federal Retirement Thrift Investment Board reports that the single largest account balance hit $9.3 million. If you that's you, or you know who it is, I'd love to find out how you did it.

Can I take my TSP in a lump sum?

You can request to receive a total distribution of your entire TSP account balance if you want to take all of your money out of the TSP. Once processed, your TSP account balance will be $0, and you'll no longer be able to move money into the TSP from eligible plans.

Do I need to report my TSP on my taxes?

With traditional TSP, your contributions go into the TSP before tax withholding, which can potentially lower your current income tax rate. But when you take money from your traditional TSP, you'll pay taxes on both your contributions and earnings at the income tax rate of the year you make the withdrawal.

What is backdoor Roth IRA?

A backdoor Roth IRA is a strategy rather than an official type of individual retirement account. It is a technique used by high-income earners—who exceed Roth IRA income limits for making contributions—to contribute indirectly–through the back door–by converting their traditional IRA to a Roth IRA.

What is the best distribution for TSP?

Your best bet is to stick with the C, S and I Funds. Here's the ratio we recommend for your portfolio: 80% in the C Fund, which is tied to the performance of the S&P 500. 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return.