TSP Limits Raised for 2020

I am so excited that the federal government has decided to raise the limits on what you are allowed to contribute to your retirement accounts. You know from my previous article that I like to talk mostly about the Thrift Savings Plan, but the contribution limits are the same for a 401(k), 403(b) and 457.

So how much can you contribute now?

With the Thrift Savings Plan as of January first you will now be able to contribute $19,500 a year, up from $19,000 for 2019. That means if you choose to contribute a dollar amount instead of a percentage from your check you will now contribute $750 a pay period up from $731. That is only a $19 difference and you can start your extra contribution on Pay Period 26 for 2018 since we get paid for pay period 26 that starts December 22 through January 4. If you are 50 and over, you contribute an extra $6,500 a year up from $6,000 last year giving you a total of $26,000 you can contribute.

Are IRA limits being raised?

Unfortunately Roth IRA and Traditional IRA are holding steady at $6,000 a year for those under the age of 50 and $7,000 a year if you are 50 and older. Now I know I will be making these changes and I wonder how many of you will join me.

Ms. Smart