The Internal Revenue Service (IRS) has announced the Thrift Savings Plan (TSP) elective deferral limit for 2022 will increase to $20,500 per year. The catch-up limit is unchanged from 2021 and remains at $6,500. These limits apply to the combined total of tax-deferred traditional and Roth contributions.
How to Enroll or Change Contributions
CBP employees may enroll in TSP or make contribution changes at any time. To enroll in the TSP program or make contribution changes for 2022, use the CBP Employee Personal Page (myEPP). Once you gain access in myEPP, click on “TSP” then “Self-Service” and follow the instructions. For more information regarding TSP’s 2022 contribution limits click here, visit www.tsp.gov, or call the TSP ThriftLine at 877-968-3778 or TDD at 877-847-4385.
Agency Matching Contributions
Don’t miss out on matching contributions! In 2022, there will be 26 pay dates so employees should plan accordingly.
Federal Employees Retirement System (FERS) employees who wish to receive Agency Matching Contributions throughout the 2022 tax year should limit bi-weekly contributions to $788.46 ($20,500/26 = $788.46). This is the amount employees may elect to contribute each pay period to maximize contributions for 2022. Employees who want to maximize the 2022 contribution using less than 26 pay periods can just divide the remaining number of pay periods in the tax year into $20,500 (for example, $20,500/24 = $854.17). Please note, you will have to round up to the next whole dollar which would be $789.
FERS employees whose contributions reach the IRS elective deferral limit before the last pay date of the year will not receive all of the matching contributions to which they are entitled. employees who want to begin their contributions on the first 2022 pay date must make their TSP election effective for pay period 26 (December 19, 2021, through January 1, 2022), which has a pay date of January 10, 2022.
Any participant who will be aged 50 or older in 2022 can also contribute up to $6,500 in additional catch-up contributions as long as regular contributions for the year are expected to reach the $20,500 limit. Catch-up contributions will be in addition to the 2022 TSP regular contribution limit, which means employees can contribute up to $27,000 in 2022.
To maximize the catch-up contribution amount of $6,500 for 2022, employees will need to contribute $250 per pay period ($6,500/26 = $250). If you are eligible and would like to maximize the contribution of both the deferral limit and the catch-up contribution, you would need to make an election of $1,039 per pay period starting in pay period 26 of 2021.
For more information regarding TSP’s 2022 contribution limits, click here or call the TSP ThriftLine at 877-968-3778 or TDD at 877-847-4385.