TSP contribution limit increases in 2013

Wednesday - 10/24/2012, 8:39am EDT

Federal employees can contribute a maximum of $17,500 annually to their Thrift Savings Plan next year — up from the $17,000 limit this year, according to the IRS.

The increase is due to a cost-of-living adjustment, which is 1.7 percent next year.

The catch-up contribution limit for employees 50 and over will remain $5,500.

This year feds could contribute post-tax dollars to a Roth-style TSP. The combined contributions to both the traditional and Roth TSP cannot exceed the $17,500 limit next year.

The TSP is federal employees' 401(k)-style retirement plan, with about 4.6 million participants.

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