TSP Limits Won

By: fedweek

The IRS has announced that investment limits on tax-favored retirement savings plans such as the TSP will remain unchanged in 2008. That means cap on regular contributions by employees—called the “elective deferral limit”—will remain at $15,500, and the limit on “catch-up” contributions—additional contributions allowed for those 50 or older in a calendar year—will remain at $5,000. Those limits are subject to change due to inflation, but the amount increases only if the indicator would produce increases above certain thresholds. The TSP for many years had separate percentage of salary limits on regular contributions, but those were phased out and now investors are subject only to the dollar cap.