TSP Investment Limit Rising in 2007

The maximum amount that actively employed TSP participants can invest in the savings program will rise to $15,500 in calendar year 2007, up from this year’s $15,000 limit. FERS employees must make sure they structure their biweekly investments so that they can continue investing through the entire calendar year, in order to capture the maximum government contributions; if they hit the dollar limit too soon, their investments will cut off and so will the government’s matching contributions. That’s not a concern for CSRS investors, who get no government contributions. Meanwhile, the amount of allowable “catch-up” investments will remain unchanged at $5,000 in 2007. Catch-ups are contributions above the dollar cap allowed for those who are age 50 or above before the end of a calendar year and who have hit the maximum or who are investing enough so that they will do so by the end of the year.