Some federal employees have been asking about whether the TSP will increase its investment limits in 2019; that is a decision for the IRS, not the TSP, and so far there has been no word.
The IRS sets an annual “elective deferral limit” that applies to the TSP along with other employer retirement-savings programs such as 401(k)s, along with a separate “TSP catch-up contributions” limit that is in addition but allowed only for those who are age 50 or older during the year. Currently, the former figure is $18,500 and the latter is $6,000.
The figures are indexed to inflation, but only increase when accumulated inflation exceeds a threshold. Some investment companies have run the numbers based on inflation figures for the latest counting period and have suggested that the elective deferral limit will increase to $19,000 for 2019 while the catch-up contributions limit will remain the same. Those calculations are unofficial, however, and the IRS decision — which could come soon — will be the last word.
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