The annual contribution limit for federal employees investing in the Thrift Savings Plan is increasing next year to $20,500 according to the new Internal Revenue Service guidelines.
The annual contribution limit for the TSP, 401(k), 403(b), and most 457 plans is increasing just over 5% over the 2021 annual limit, going from $19,500 in 2021 to $20,500 next year.
The limit on catch-up contributions for individuals aged 50 or over remains unchanged at $6,500. Therefore, federal employees who participate in the TSP who are 50 and older can contribute up to $27,000 starting January 1, 2022.
For Individual Retirement Accounts (IRA), the limit on annual contributions remains unchanged at $6,000. The IRA catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
Additional details can be found in the IRS notice: 2022 Limitations Adjusted as Provided in Section 415(d), etc.