2024 TSP Contribution Limit Predicted to Increase

Recent estimates project that the 2024 TSP annual contribution limit will increase to allow federal employees to save more for retirement.

The annual contribution limit for the Thrift Savings Plan (TSP) will increase by 2.2% in 2024 according to Mercer, a benefits consulting firm that is part of Marsh McLennan.

Mercer estimates that the annual contribution limit for the TSP and 401(k) plans will increase from $22,500 in 2023 to $23,000 in 2024. The annual catch-up contribution limit is estimated to remain the same at $7,500.

The estimate is based on increases in the Consumer Price Index for All Urban Consumers (CPI-U) data published by the government. The Internal Revenue Service (IRS) normally formally announces annual contribution limits for retirement savings plans around late October/early November.

Another estimate from Harry Sit on The Finance Buff concurs with Mercer’s prediction. Sit said that his predictions have always been accurate. He wrote, “…I’m able to calculate them [annual adjustments] using the published inflation numbers and going by the same rules the IRS uses as stipulated by law. I’ve maintained a record of 100% accuracy ever since I started doing these calculations.”

Both estimates are based on the July CPI-U figures from the government.

Past Annual TSP Contribution Limits

The 2023 TSP annual contribution limit increased significantly over the 2022 limit. It rose by 9.8%, increasing from $20,500 in 2022 to $22,500 in 2023. Rising inflation over the last few years has driven the increases in the annual contribution limits to retirement savings plans since they are subject to annual cost of living adjustments.

The annual TSP contribution limit has risen 28.6% since 2013. It has increased 15.4% just in the last two years (2021-2023), accounting for a little over half of the increase.

The table below shows the annual TSP limits for the past 10 years.

YearAnnual Contribution LimitCatch-Up Contribution LimitTotal
* Estimated

About the Author

Ian Smith is one of the co-founders of FedSmith.com. 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.