TSP Investment Limits Stay Flat

The investment limit on tax-favored retirement savings plans such as the TSP will remain $18,000. That’s the cap on regular investments by employees, called the “elective deferral limit.” For those making investments on a percentage of salary basis, investments will rise automatically with the pay raise–as will agency contributions, for those under FERS. Those making investments based on a dollar amount per pay period might wish to consider increasing that amount, especially if they are under FERS and would not capture as much of a matching government contribution, which is based on a percentage of salary the employee invests. The separate limit on “catch-up contributions”–additional investments allowed for those 50 or older at any time in calendar year 2017–similarly will stay flat at $6,000. Those who made catch-up investments this year will have to make a new election if they want to make them again in the new year; unlike regular investments, those don’t carry over from year to year.