Catch-up contributions are changing — Starting in January 2021, the process for catch-up contributions will be easier for TSP participants. If you’re turning age 50 or older, you’ll no longer need to make separate catch-up elections to your TSP account to contribute toward the catch-up limit.
Here’s how it will work:
- If you reach the IRS elective deferral or annual addition limit before the end of the year and keep saving, your contributions will automatically continue toward the catch-up limit.
- Contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of salary.
- The contribution amount you choose will continue each year unless you change it.