The dollar limit on investments in the TSP, the “elective deferral limit,” will rise in 2020 by $500 for the second straight year, to $19,500.

Also, the “catch-up contribution” limit is rising by the same amount to $6,500. That is an additional investment allowed for investors who are at least age 50—or will be by the end of the calendar year—who have reached the standard dollar limit or who are on an investing pace to reach it by the end of the year.


In both cases the figures are for personal investments only and don’t include government contributions for those under FERS or transfers into the TSP from retirement savings programs of prior employers. For those investing in both the traditional (tax-free on investment, taxable on withdrawal) and Roth (after-tax on investment, tax-free on withdrawal so long as certain conditions are met), each limit applies to the combined total of both types of investment.

The figures are set by the IRS based on an inflation-adjustment formula and also apply to 401(k) and other similar employer-sponsored retirement savings vehicles.

The IRS meanwhile said that the standard dollar limit for IRA investments will remain $6,000 while the limit on additional contributions for those age 50 and over will remain $1,000.