This checklist is designed to help you and your advisor audit your account for the 2026 plan year. With the launch of in-plan Roth conversions and the Super Catch-Up, your "set it and forget it" strategy from last year may no longer be optimal.
✅ 2026 TSP Optimization Checklist
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[ ] Verify Your 2025 Wages (Box 3 of W-2): If your 2025 wages exceeded $150,000, the IRS now requires all of your 2026 catch-up contributions to be Roth. Ensure your payroll settings are updated to avoid rejected contributions.
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[ ] Adjust for the "Super Catch-Up" (Ages 60–63): If you turn 60, 61, 62, or 63 in 2026, you are eligible for the $11,250 catch-up limit. Check your automated contributions to ensure you aren't leaving this extra $3,250 in tax-advantaged space on the table.
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[ ] Set Your "Max-Out" Number: To hit the new $24,500 limit perfectly across 26 pay periods, set your contribution to $943. If you are 50+ (but not in the 60–63 bracket), aim for $1,250 per paycheck to hit the $32,500 total limit.
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[ ] Perform a "Roth Conversion Analysis": Log in to your TSP "My Account" and use the new Roth In-Plan Conversion tool. Determine if converting a portion of your Traditional balance (including your agency match) into Roth makes sense for your current tax bracket.
Note: You must have at least $500 in your account and leave a $500 "balance behind" in each source to use this feature.
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[ ] Plan for Tax Liquidity: If you plan to use the new Roth conversion feature, ensure you have cash set aside in a taxable account (like a high-yield savings account) to pay the resulting tax bill. Do not use TSP funds to pay the conversion tax, as this will trigger penalties.
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[ ] Review Your "Spillover" Settings: Double-check that your catch-up contributions are set to "spill over" automatically once you hit the $24,500 mark. This ensures you get your full agency match without interruption.
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[ ] Update Your Beneficiaries: With the elimination of Roth RMDs, your TSP is now a more powerful legacy tool. Review your designated beneficiaries to ensure your tax-free wealth passes to your heirs as intended.