James48843
11-08-2019, 08:08 AM
From TSP last night:
2020 Contribution limits (https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxM DAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjA xOTExMDcuMTI1NzcyNTEiLCJ1cmwiOiJodHRwczovL3d3dy50c 3AuZ292L3doYXRzbmV3L0NvbnRlbnQvaW5kZXguaHRtbD91dG1 fY2FtcGFpZ249JnV0bV9tZWRpdW09ZW1haWwmdXRtX3NvdXJjZ T1nb3ZkZWxpdmVyeSNpcmMyMDIwIn0.1ziYbuI8jCEc7ckEjpV cnOi3uQfDI6rcBvB4aoe-F4I/br/71066790490-l)
The Internal Revenue Code places specific limits on the amount that you can contribute to employer-sponsored plans like the TSP each year.
The limits for 2020 have been announced. To learn more, visit "Contribution Limits (https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxM DEsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjA xOTExMDcuMTI1NzcyNTEiLCJ1cmwiOiJodHRwczovL3d3dy50c 3AuZ292L1BsYW5QYXJ0aWNpcGF0aW9uL0VsaWdpYmlsaXR5QW5 kQ29udHJpYnV0aW9ucy9jb250cmlidXRpb25MaW1pdHMuaHRtb D91dG1fY2FtcGFpZ249JnV0bV9tZWRpdW09ZW1haWwmdXRtX3N vdXJjZT1nb3ZkZWxpdmVyeSJ9.i0ixAjlaNJUx6a-dk2f2jE76wKTKmlfhfc56m_L9l-U/br/71066790490-l)."
Details:
Contribution Limits
Resources
Calculators:
How Much Will My Savings Grow? (https://www.tsp.gov/PlanningTools/Calculators/howSavingsGrow.html)
How Much Can I Contribute? (https://www.tsp.gov/PlanningTools/Calculators/electiveContributions.html)
Publications:
Summary of the Thrift Savings Plan (https://www.tsp.gov/PDF/formspubs/tspbk08.pdf)
Annual Limit on Elective Deferrals (https://www.tsp.gov/PDF/formspubs/tspfs07.pdf)
Forms:
U = Uniformed Services
TSP-1 (https://www.tsp.gov/PDF/formspubs/tsp-1.pdf) (TSP-U-1 (https://www.tsp.gov/PDF/formspubs/tsp-u-1.pdf)), Election Form
TSP-1-C (https://www.tsp.gov/PDF/formspubs/tsp-1-c.pdf) (TSP-U-1-C (https://www.tsp.gov/PDF/formspubs/tsp-u-1-c.pdf)), Catch-Up Contribution Election
Don't miss out on matching contributions.
If you are a FERS or BRS participant and your contributions reach the IRS elective deferral limit before the last pay date of the year, you will not receive all of the matching contributions to which you would otherwise be entitled. Use the calculator, How much can I contribute? (https://www.tsp.gov/PlanningTools/Calculators/electiveContributions.html) to ensure that you don't leave any money on the table.
The Internal Revenue Code (IRC) places limits on the dollar amount of contributions you can make to the TSP. The Internal Revenue Service (IRS) calculates them every year and they can change annually. The TSP announces the limits on the TSP website and the ThriftLine (https://www.tsp.gov/ParticipantSupport/Content/contact/index.html) as well as through its various publications when the limits become available.
Elective Deferral Limit
$19,500
(Up $500 from 2019)
IRC §402(g)
Applies to combined total of traditional and Roth contributions. For members of the uniformed services, it includes all traditional and Roth contributions from taxable basic pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=BasicPay), incentive pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=IncentivePayUniformedServices), special pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=SpecialPayUniformedServices), and bonus pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=BonusPayUniformedServices), but does not apply to traditional contributions made from tax-exempt pay earned in a combat zone.
Annual Addition Limit
$57,000
(Up $1,000 from 2019)
IRC §415(c)
An additional limit imposed on the total amount of all contributions made on behalf of an employee in a calendar year. This limit is per employer and includes employee contributions (tax-deferred, after-tax, and tax-exempt (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=TaxExemptContributions)), Agency/Service Automatic (1%) Contributions, and Matching Contributions (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=MatchingContributions). For 415(c) purposes, working for multiple Federal agencies or services in the same year is considered having one employer.
Catch-up Contribution Limit
$6,500 (Up $500 from 2019)
IRC §414(v)
The maximum amount of catch-up contributions (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=CatchUpContributions) that can be contributed in a given year by participants age 50 and older. It is separate from the elective deferral and annual addition limit imposed on regular employee contributions.
If you are a member of the uniformed services, you should know that Roth contributions are subject to the elective deferral limit ($19,500 for 2020) even if they are contributed from tax-exempt pay. If you want to contribute tax-exempt pay toward the annual additions limit, you will have to elect traditional contributions for any amount over the elective deferral limit.
In addition, if you are eligible to make catch-up contributions and you are deployed to a designated combat zone, you will not be able to make any traditional catch-up contributions from your tax-exempt pay. However, Roth catch-up contributions from tax-exempt pay are allowed.
If you are a member of the Ready Reserve and you are contributing to both a uniformed services and a civilian TSP account the elective deferral and catch-up contribution limits apply to the total amount of employee contributions you make in a calendar year to both accounts.
If you are called to active duty and make tax-exempt contributions to the TSP while deployed in a designated combat zone, the sum of the employee and agency contributions to your civilian account as well as the tax-exempt contributions made to your uniformed services account cannot exceed the annual addition limit.
2020 Contribution limits (https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxM DAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjA xOTExMDcuMTI1NzcyNTEiLCJ1cmwiOiJodHRwczovL3d3dy50c 3AuZ292L3doYXRzbmV3L0NvbnRlbnQvaW5kZXguaHRtbD91dG1 fY2FtcGFpZ249JnV0bV9tZWRpdW09ZW1haWwmdXRtX3NvdXJjZ T1nb3ZkZWxpdmVyeSNpcmMyMDIwIn0.1ziYbuI8jCEc7ckEjpV cnOi3uQfDI6rcBvB4aoe-F4I/br/71066790490-l)
The Internal Revenue Code places specific limits on the amount that you can contribute to employer-sponsored plans like the TSP each year.
The limits for 2020 have been announced. To learn more, visit "Contribution Limits (https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxM DEsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjA xOTExMDcuMTI1NzcyNTEiLCJ1cmwiOiJodHRwczovL3d3dy50c 3AuZ292L1BsYW5QYXJ0aWNpcGF0aW9uL0VsaWdpYmlsaXR5QW5 kQ29udHJpYnV0aW9ucy9jb250cmlidXRpb25MaW1pdHMuaHRtb D91dG1fY2FtcGFpZ249JnV0bV9tZWRpdW09ZW1haWwmdXRtX3N vdXJjZT1nb3ZkZWxpdmVyeSJ9.i0ixAjlaNJUx6a-dk2f2jE76wKTKmlfhfc56m_L9l-U/br/71066790490-l)."
Details:
Contribution Limits
Resources
Calculators:
How Much Will My Savings Grow? (https://www.tsp.gov/PlanningTools/Calculators/howSavingsGrow.html)
How Much Can I Contribute? (https://www.tsp.gov/PlanningTools/Calculators/electiveContributions.html)
Publications:
Summary of the Thrift Savings Plan (https://www.tsp.gov/PDF/formspubs/tspbk08.pdf)
Annual Limit on Elective Deferrals (https://www.tsp.gov/PDF/formspubs/tspfs07.pdf)
Forms:
U = Uniformed Services
TSP-1 (https://www.tsp.gov/PDF/formspubs/tsp-1.pdf) (TSP-U-1 (https://www.tsp.gov/PDF/formspubs/tsp-u-1.pdf)), Election Form
TSP-1-C (https://www.tsp.gov/PDF/formspubs/tsp-1-c.pdf) (TSP-U-1-C (https://www.tsp.gov/PDF/formspubs/tsp-u-1-c.pdf)), Catch-Up Contribution Election
Don't miss out on matching contributions.
If you are a FERS or BRS participant and your contributions reach the IRS elective deferral limit before the last pay date of the year, you will not receive all of the matching contributions to which you would otherwise be entitled. Use the calculator, How much can I contribute? (https://www.tsp.gov/PlanningTools/Calculators/electiveContributions.html) to ensure that you don't leave any money on the table.
The Internal Revenue Code (IRC) places limits on the dollar amount of contributions you can make to the TSP. The Internal Revenue Service (IRS) calculates them every year and they can change annually. The TSP announces the limits on the TSP website and the ThriftLine (https://www.tsp.gov/ParticipantSupport/Content/contact/index.html) as well as through its various publications when the limits become available.
Elective Deferral Limit
$19,500
(Up $500 from 2019)
IRC §402(g)
Applies to combined total of traditional and Roth contributions. For members of the uniformed services, it includes all traditional and Roth contributions from taxable basic pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=BasicPay), incentive pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=IncentivePayUniformedServices), special pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=SpecialPayUniformedServices), and bonus pay (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=BonusPayUniformedServices), but does not apply to traditional contributions made from tax-exempt pay earned in a combat zone.
Annual Addition Limit
$57,000
(Up $1,000 from 2019)
IRC §415(c)
An additional limit imposed on the total amount of all contributions made on behalf of an employee in a calendar year. This limit is per employer and includes employee contributions (tax-deferred, after-tax, and tax-exempt (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=TaxExemptContributions)), Agency/Service Automatic (1%) Contributions, and Matching Contributions (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=MatchingContributions). For 415(c) purposes, working for multiple Federal agencies or services in the same year is considered having one employer.
Catch-up Contribution Limit
$6,500 (Up $500 from 2019)
IRC §414(v)
The maximum amount of catch-up contributions (https://www.tsp.gov/sitehelp/glossary/glossary.html?term=CatchUpContributions) that can be contributed in a given year by participants age 50 and older. It is separate from the elective deferral and annual addition limit imposed on regular employee contributions.
If you are a member of the uniformed services, you should know that Roth contributions are subject to the elective deferral limit ($19,500 for 2020) even if they are contributed from tax-exempt pay. If you want to contribute tax-exempt pay toward the annual additions limit, you will have to elect traditional contributions for any amount over the elective deferral limit.
In addition, if you are eligible to make catch-up contributions and you are deployed to a designated combat zone, you will not be able to make any traditional catch-up contributions from your tax-exempt pay. However, Roth catch-up contributions from tax-exempt pay are allowed.
If you are a member of the Ready Reserve and you are contributing to both a uniformed services and a civilian TSP account the elective deferral and catch-up contribution limits apply to the total amount of employee contributions you make in a calendar year to both accounts.
If you are called to active duty and make tax-exempt contributions to the TSP while deployed in a designated combat zone, the sum of the employee and agency contributions to your civilian account as well as the tax-exempt contributions made to your uniformed services account cannot exceed the annual addition limit.