More Saving Opportunities for Retirement: TSP Contribution Limits Going Up

TSP participants will have more room to save for retirement with the annual contribution limits for the TSP increasing to $17,000 per year in 2012.

The IRS recently released cost of living adjustments for pension plans and other retirement related plans. Federal retirees under CSRS likely have heard by now about the 3.6% COLA for retirees who have had benefits for at least one year. But the IRS announcement also included important information for TSP participants.

The annual contribution limit for TSP participants has increased to $17,000 per year from $16,500. It applies to private sector 401(k) plans as well. The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.

Here is how the annual contribution limits look going back to 2007:

Year Annual Contribution Limit Max Catch-Up Contribution Limit
2007 $15,500 $5000
2008 $15,500 $5000
2009 $16,500 $5500
2010 $16,500 $5500
2011 $16,500 $5500
2012 $17,000 $5500


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Ian Smith is one of the co-founders of He has over 20 years of combined experience in media and government services, having worked at two government contracting firms and an online news and web development company prior to his current role at FedSmith.