2026 TSP Frequently Asked Questions: Navigating the New Rules
The Thrift Savings Plan is undergoing its most significant transformation in years. Here are the answers to the most common questions federal employees are asking in 2026.
What are the TSP contribution limits for 2026?
For the 2026 calendar year, the elective deferral limit has increased to $24,500. If you are age 50 or older, you can contribute an additional $8,000 in catch-up TSP contributions, bringing your total potential savings to $32,500.
How does the TSP "Super Catch-Up" work for ages 60–63?
Under SECURE 2.0, participants who turn 60, 61, 62, or 63 in 2026 are eligible for a higher catch-up limit of $11,250. When combined with the standard TSP limit, these "Super Catch-Up" eligible employees can contribute a total of $35,750 this year. Once you turn 64, your limit reverts to the standard catch-up amount.
I heard TSP catch-up contributions must be Roth now. Is that true?
Only for high earners. Starting in 2026, if your wages from the previous year (2025) exceeded $150,000, the law requires your catch-up contributions to be made to the Roth (after-tax) TSP. If you earn below this threshold, you can still choose between Traditional or Roth for your catch-up funds.
Can I finally move my Traditional TSP balance into a Roth account?
Yes! As of late January 2026, the TSP has officially launched In-Plan Roth Conversions. You can now move money from your Traditional (pre-tax) balance to your Roth (after-tax) balance without leaving the TSP.
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The Catch: You must pay ordinary income tax on the converted amount in the year of the move, and you cannot use TSP funds to pay that tax bill—it must come from outside savings.
Are Roth TSP balances subject to Required Minimum Distributions (RMDs)?
No. One of the best changes for 2026 is that Roth TSP balances are no longer subject to RMDs during the owner’s lifetime. This allows your Roth money to stay in the plan and continue growing tax-free for as long as you live, mirroring the rules for private Roth IRAs.
What happens to my Agency TSP Match?
FERS and BRS participants still receive the 1% automatic and 4% matching contributions. A new feature for 2026 is the ability to convert your agency matching funds into Roth via the in-plan conversion tool, though these matches initially land in your Traditional balance first for tax-reporting purposes.