Federal employees will be able to add more money every year to their Thrift Savings Plan accounts under a change announced by the Internal Revenue Service.
Starting in 2018, TSP account holders can make pretax contributions of up to $18,500 a year, an increase of $500 from 2017.
The increase applies to the TSP and the 401(k) plans popular in the private sector. The annual limit on employee contributions to the TSP does not include any money that is added or matched by the employer.
The IRS also announced that the so-called catch-up contributions for people age 50 and older remains unchanged at $6,000. Employees 50 or older can add another $6,000 a year to their TSP, allowing them to go above the annual limit because they are closer to retirement.
NTEU is working on Capitol Hill to pass legislation that would give TSP account holders more flexibility in how they manage their account withdrawals. The TSP Modernization Act, endorsed by NTEU, has passed the House and is awaiting final passage in the Senate.