The IRS has raised the standard investment limit for the TSP and other 401(k) type retirement savings plans to $20,500 for 2022, up from the current $19,500.

That “elective deferral limit” is the total investment allowed in traditional balances (pre-tax on investment, taxable on withdrawal), Roth balances (after-tax on investment, tax-free on withdrawal if certain conditions are met) or both, for those with both types of balance.

Meanwhile, the separate “catch-up contribution” limit will remain unchanged for 2022 at $6,500. That is an additional amount above the standard limit allowed for those who are age 50 within the pertinent year. Effective this year, no separate election is needed; for those eligible to make catch-up contributions, any investments beyond the standard limit “spill over”—they are automatically designated as catch-up contributions, up to that limit. Through last year, those wishing to make catch-up investments had to specifically elect to make them.

Employer contributions on behalf of FERS employees and transfers into the TSP of money from retirement savings programs of prior employers do not count against the limits.

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