Published
Oct 9, 2026
Last Updated
Oct 9, 2026
TSP Contribution Limits 2027: Catch-Up Rules and Strategy
The TSP contribution limits for 2027 are not official yet, but the regular employee limit is projected at $25,500, up from $24,500 in 2026. The TSP, or Thrift Savings Plan, the federal government's tax-advantaged retirement savings program, follows limits set by the IRS, the Internal Revenue Service. The IRS hasn't published its 2027 figures yet.
If you're age 50 or older, you can add a catch-up contribution on top of the regular limit. Updated October 2026.
This guide covers the confirmed 2026 limits, the 2027 projections, catch-up rules, the Roth catch-up requirement, and how to set a per-paycheck election. It applies to employees under FERS, the Federal Employees Retirement System, and CSRS, the Civil Service Retirement System. OPM, the U.S. Office of Personnel Management, administers both systems.
Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, will update the projected figures below once the IRS publishes the official 2027 numbers. Until then, plan around the confirmed 2026 numbers.
What Are the TSP Contribution Limits for 2027?
The TSP contribution limits for 2027 are projections, not final numbers. The 2026 regular employee limit is $24,500, according to the IRS.
Marsh, a global insurance and benefits consulting firm, projects a 2027 limit of $25,500. Marsh also projects catch-up amounts of $8,500 for employees age 50 or older and $11,750 for ages 60 through 63.
Milliman, an actuarial and benefits consulting firm, says the regular limit could instead land at $25,000 if September inflation comes in low. The IRS typically publishes next year's limits in late October or early November. Federal employees reviewing their retirement savings options can also learn about the TSP Mutual Fund Window, including its investment options, eligibility requirements, and fees.
Until then, treat every 2027 figure as a projection. If you set your election today, the confirmed 2026 numbers are the safest starting point.
TSP contribution limits summary: 2026 vs. 2027
Table 1: TSP contribution limits, 2026 versus projected 2027. Sources: IRS Notice 2025-67 and a USDA National Finance Center payroll bulletin for 2026; Marsh projections for 2027. Projected figures are not official. The annual additions limit is not the maximum you can contribute yourself.
Compare the totals side by side. A 52-year-old's projected 2027 ceiling of $34,000 is $1,500 higher than the 2026 ceiling of $32,500.
The same $1,500 gap applies at ages 60 through 63, where the totals move from $35,750 to a projected $37,250.
The IRS announcement of the 2026 limits and the TSP contribution limits page are the official sources to check. If you're building a full income plan, pair these limits with our federal retirement planning guide.
How the IRS Sets TSP Contribution Limits 2027
The IRS sets the employee deferral limit by formula. It adjusts the limit for inflation and rounds in $500 increments, according to Milliman.
September's Consumer Price Index reading is the final input. The Bureau of Labor Statistics releases that reading on October 14, 2026, according to Milliman.
Federal employees and retirees can also explore retirement planning resources for federal employees to better understand how retirement benefits fit into their overall plans.
Milliman's March forecast projected a $500 increase to $25,000. Its later forecast projects a $1,000 increase to $25,500, although low September inflation could still hold the limit at $25,000.
According to Marsh, every key retirement plan limit will rise from 2026 to 2027.
Timing matters for payroll planning. The IRS announced the 2026 limits on November 13, 2025, according to Milliman.
The official 2027 numbers will likely arrive after the October inflation release. You can set an election based on the confirmed 2026 numbers now and adjust it after the IRS publishes.
Regular TSP Contributions: Traditional vs. Roth
Every TSP participant has one regular employee contribution limit. It covers traditional and Roth contributions combined.
For 2026, that limit is $24,500, according to the IRS.
Traditional contributions come out of pay before federal income tax, which lowers your taxable income today. Roth contributions come from after-tax pay, and qualified withdrawals in retirement are tax-free, according to the TSP. However, if you're considering borrowing from your retirement savings for a home purchase, learn more about the TSP loan rules for buying a house before making a decision.
You can split contributions between the two types in any proportion. Our TSP Roth vs. traditional guide compares the tradeoffs.
If you contribute to both a civilian TSP account and a uniformed services TSP account, the two accounts share one regular limit, according to the TSP. For example, if you put $10,000 into your civilian account, you have $14,500 of the 2026 regular limit left for your uniformed services account.
Check your own situation with your payroll office if you hold both account types.
TSP Catch-Up Contributions for Ages 50 and Older
If you're age 50 or older, you can contribute catch-up amounts to the TSP on top of the regular limit. For 2026, the catch-up is $8,000 for ages 50 and older and $11,250 for ages 60 through 63, according to the IRS.
Those amounts bring the 2026 combined limits to $32,500 and $35,750, according to a USDA National Finance Center payroll bulletin. Marsh projects 2027 catch-up amounts of $8,500 and $11,750, which are not official. As you plan your TSP contributions and future withdrawals, it is also important to understand required minimum distributions (RMDs) for federal employees and how they may affect your retirement income and taxes.
Once you reach the regular limit, additional eligible contributions can count toward your catch-up limit, subject to TSP and payroll rules. The same payroll bulletin says contributions start counting toward catch-up automatically for the employees that the center pays.
Payroll systems vary, so confirm with your payroll office that your catch-up contributions are handled the way you expect. The higher amount applies only during ages 60 through 63. The standard catch-up resumes at age 64.
Illustrative planning scenario: A 61-year-old FERS employee who wants to maximize 2027 contributions would target the projected $37,250, which is the projected $25,500 regular limit plus the projected $11,750 catch-up.
If you're paid over 26 pay periods, that equals $1,432.69 per pay period. These figures are illustrative and use projected limits, not a client outcome.
A 55-year-old with the same plan would target a projected $34,000, which is $3,250 less.
Many FERS employees reach the MRA, or Minimum Retirement Age, the earliest age a FERS employee can retire with an immediate annuity, while they're still eligible for catch-up contributions. Our FERS retirement age guide explains how to find your MRA.
Roth Catch-Up Requirement for Higher Earners
Higher earners must make TSP catch-up contributions as Roth contributions. The rule applies to participants whose prior-year wages from the plan sponsor exceeded the applicable IRS threshold, according to the TSP.
For federal employees, the determination is based on the applicable prior-year wages reported by the plan sponsor, subject to the IRS rules. Marsh reports the threshold at $150,000 for 2026 and projects $155,000 for 2027, which is not an official figure.
You pay tax on a Roth catch-up contribution in the year you make it, and qualified withdrawals are tax-free later. If your wages fall below the threshold, you can still choose traditional or Roth catch-up contributions. For broader retirement planning, review our 2027 FERS COLA estimate to understand how projected cost-of-living adjustments may affect federal retirees.
CSRS employees who pay no Social Security tax are generally outside the requirement, according to TSP guidance.
Wages of $152,000 would exceed a $150,000 threshold, while wages of $148,000 would not.
The IRS has issued final regulations on the Roth catch-up rule. If you're near the threshold, confirm your prior-year wages with your payroll office and consult a tax professional.
How Agency Matching Works with Your TSP Contribution Limit
FERS employees receive agency contributions of up to 5% of basic pay, according to the TSP. That's a 1% automatic contribution plus matching of up to 4%.
The match equals $1 for each $1 you contribute on the first 3% of pay and $0.50 for each $1 on the next 2%.
Uniformed service members covered by the Blended Retirement System (BRS) receive the same structure. CSRS employees receive no agency contributions, according to the TSP. For more information about the firm and its approach to federal retirement planning, visit Federal Pension Advisors.
Contribute at least 5% of basic pay each pay period to receive the full match.
Consider this illustrative example: a FERS employee with $90,000 in basic pay who contributes 5% puts in $4,500 for the year. If that employee is paid over 26 pay periods, the contribution is $173.08 per pay period. The agency adds $4,500.
TSP calculates the match each pay period. If you're under age 50 and reach the regular limit before the final pay date of the year, you lose matching contributions for the remaining pay periods, according to the TSP.
Suppose you're paid over 26 pay periods and contribute $2,000 per pay period in 2027 under a projected $25,500 limit. You'd reach the limit during pay period 13 and lose the match for the final 13 pay periods.
Employees age 50 or older keep earning the match on their first 5% of pay as contributions flow into catch-up, until they reach both limits.
Agency contributions don't count toward the employee deferral limit. They do count toward the annual additions limit of $72,000 in 2026, according to the IRS. Marsh projects $75,000 for 2027.
The annual additions limit isn't the most you can contribute yourself. Your own limit is the regular limit plus any catch-up.
Per-Paycheck TSP Contribution Targets for 2026 and 2027
Many federal employees are paid over 26 pay periods, although payroll schedules can vary. Dividing an annual target by 26 gives the per-paycheck election for those employees.
The table below assumes 26 pay periods and uses confirmed 2026 limits and projected 2027 limits. Confirm your own pay schedule with your payroll office before you set an election.
Table 2: Per-pay-period contribution targets. Calculated by Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, from IRS limits and Marsh projections. 2027 figures are projected and not official.
If the IRS holds the 2027 regular limit at $25,000, as Milliman's low scenario suggests, the per-pay-period target becomes $961.54. That's $19.23 less per pay period than the $980.77 target at $25,500.
TSP Contribution Strategy: Five Steps to Set Your 2027 Election
Setting a TSP election takes five steps: capture the match, choose a tax type, pick a target, spread contributions evenly, and revisit after the IRS announcement.
- Capture the full match. Contribute at least 5% of basic pay if you're covered by FERS or BRS.
- Choose traditional, Roth, or a split. Weigh your current tax bracket against expected retirement income.
- Pick a target. Use the confirmed 2026 limit now, or the projected 2027 limit if you plan ahead.
- Spread contributions evenly. Divide the annual target by your number of pay periods to avoid losing the match late in the year.
- Revisit after the IRS announcement. Submit any change through your agency payroll office.
If you also have a high-deductible health plan, coordinate TSP saving with HSA saving. See our max HSA contribution 2027 guide for those limits.
Common TSP Contribution Mistakes to Avoid
- Front-loading contributions. Reaching the limit early can end the match for the rest of the year.
- Skipping the 5% minimum. Contributing less than 5% leaves free agency money unclaimed.
- Ignoring the Roth catch-up rule. Higher earners must make catch-up contributions as Roth.
- Treating projections as final. The 2027 limits are unofficial until the IRS publishes them.
- Forgetting shared limits. Civilian and uniformed service TSP accounts share one regular limit.
For tax questions tied to retirement income, see our federal retirement tax planning guide.
How the TSP Fits into Your FERS Retirement Plan
Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, treats the TSP as one of three income sources in federal retirement. The other two are the FERS basic annuity and Social Security. Its federal retirement planning resources help federal employees understand how these benefits work together.
Each source behaves differently, and your mix depends on your retirement system and years of service. The annuity is a lifetime payment. Social Security benefits generally receive annual cost-of-living adjustments (COLAs).
Your TSP balance depends on your contributions, withdrawals, and investment performance.
TSP savings can provide an additional source of retirement income. They may also give you more flexibility in deciding when and how to use your other income sources, including whether to bridge income before Social Security begins.
You can estimate the other pieces with our FERS annuity calculation guide and FERS supplement guide. If you're near retirement, review your TSP withdrawal options.
CSRS participants can read CSRS vs. FERS for the differences, including the lack of an agency match. If you're comparing how Social Security fits, read our Social Security for federal employees guide.
This article provides general information, not tax or financial advice. Employees should confirm their situation with a tax professional and review their options for federal retirement planning. They should also check current retirement rules and limits through the appropriate official sources, including the Office of Personnel Management (OPM).
Set Your TSP Contributions Before the IRS Announces 2027 Limits
The TSP contribution limits 2027 are projected at $25,500 for the regular limit, with projected catch-up amounts of $8,500 and $11,750, pending the IRS announcement. None of these 2027 figures is official. Federal employees can also explore TSP webinars to learn more about Thrift Savings Plan contributions and retirement planning.
Capture the full agency match, spread your contributions evenly, and watch the Roth catch-up rule. Those three habits matter more than any single projection.
Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, helps federal employees connect TSP decisions to FERS, Social Security, and FEHB planning. Book a consultation to discuss how these benefits may fit into your retirement plans.
Schedule a consultation with a federal retirement specialist to review your 2027 contribution strategy. Download the TSP election worksheet to calculate your per-paycheck amount before the IRS announces the new limits.
FAQs About TSP Contribution Limits 2027
What is the TSP contribution limit for 2027?
The 2027 TSP contribution limit has not been announced yet. The 2026 regular employee limit is $24,500, while Marsh projects the 2027 limit at $25,500. Employees age 50 or older may also make catch-up contributions.
What is the TSP catch-up limit for 2027?
The 2026 catch-up limit is $8,000 for employees age 50 or older and $11,250 for ages 60 through 63. Marsh projects the 2027 catch-up limits at $8,500 and $11,750, respectively. These 2027 figures are not official yet.
Do TSP catch-up contributions have to be Roth?
Only for higher earners who meet the applicable IRS wage threshold. The 2026 threshold is $150,000, while Marsh projects $155,000 for 2027. Participants below the threshold can generally choose traditional or Roth catch-up contributions.
How much should I contribute to my TSP?
If you are covered by FERS or the Blended Retirement System (BRS), contribute at least 5% of basic pay to receive the full agency match. If you can save more, you can work toward the annual contribution limit. Spreading contributions across pay periods can help avoid missing matching contributions later in the year.
Does the TSP agency match count toward my contribution limit?
No. Agency automatic and matching contributions do not count toward your employee elective deferral limit. However, they do count toward the annual additions limit, which is $72,000 for 2026.
Disclaimer: This article is for informational and educational purposes only and does not constitute tax, legal, or financial advice. The 2027 Thrift Savings Plan (TSP) contribution limits and catch-up amounts discussed are projections, not official IRS figures. Actual limits, eligibility requirements, and tax rules may differ. Verify current information with the Internal Revenue Service (IRS), the Thrift Savings Plan (TSP), and your agency's payroll office. Consult a qualified tax or financial professional before making decisions based on your individual circumstances.
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Thomas A. Doherty
Thomas A. Doherty is a retirement planning consultant with 35 years of experience helping individuals, federal employees, academic employees, and business owners better understand their retirement options. His work focuses on helping clients make the most of their available benefits, insurance policies, and investment plans so they can build more stable retirement income and reduce unnecessary financial risk.
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