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Thrift Savings Plan – Contribution limits increase this year

January 12, 2022

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The Postal Service wants employees to know that the Internal Revenue Service (IRS) has made changes to the Thrift Savings Plan (TSP) contribution limits for 2022.

Employees can now contribute up to $20,500 to their TSP, starting Jan. 1. The previous limit was $19,500.

Additionally, employees age 50 and older can also use the TSP catch-up option to contribute an additional $6,500, for a total of $27,000 in contributions.

Employees under the Federal Employees Retirement System (FERS) who contribute 5 percent of their basic pay to the TSP each pay period are remineded that the Postal Service will contribute an additional 4 percent of your basic pay to your TSP account in addition to an automatic 1 percent contribution.

TSP participants who have not maxed out their contributions are encouraged to consider increasing their contribution amounts to better reach their retirement savings goals.

Employees who want to make changes to their TSP contributions should access PostalEase on LiteBlue.

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