Higher Contributions Allowed for TSP Investors

Biweekly investments in the Thrift Savings Plan will no longer be limited according to percentage of salary, effective in calendar year 2006. Those limits had been phased out over the last five years, and in 2005 were 15 percent per pay period for FERS employees and 10 percent for CSRS employees, subject to an IRS-imposed dollar limit of $14,000. For 2006, the dollar cap is going up to $15,000. Also, investors age 50 and older during 2006 can make special “catch-up” investments over and above the limits that otherwise would apply to them. The maximum catch-up investment, which must be made through payroll withholding, is rising by $1,000 to $5,000 in 2006.