Regular employee contributions
Each pay period, your agency or service will deduct your contributions, also known as deferrals, from your basic salary in the amount or percentage that you chose when you started contributing or were automatically enrolled.
Your agency or service will continue to deduct your contribution until you do the following:
-
Make a new election changing the amount - Elect to stop your contributions
- Reach the IRS contribution limit
If you are a member of the uniformed services:
- You can elect to contribute from 1 to 100 percent of any incentive pay, special pay, or bonus pay (even if you’re not currently receiving them)—as long as you elect to contribute at least 1% from your basic pay.
- You cannot contribute from sources such as housing or subsistence allowances
- If you are receiving tax-exempt pay (i.e., pay that is subject to the combat zone tax exclusion), your contributions from that pay will also be tax-exempt.
- Use our How Much Can I Contribute? calculator to determine the specific dollar amount to be deducted each pay period to maximize your contributions and ensure that you do not exceed the annual IRS elective deferral limit.
Agency/Service automatic (1%) contributions
If you’re a FERS or BRS participant, your agency or service will contribute an amount equal to 1% of your basic pay each pay period to your TSP account. These are called Agency/Service Automatic (1%) Contributions, and you don’t need to make employee contributions to receive them.
Agency/Service Automatic (1%) Contributions are not taken out of your pay and do not reduce your pay for income tax purposes. Your agency or service gives these contributions to you.
These contributions—equal to 1% of your basic pay—are deposited into your TSP account every pay period, beginning the first time you’re paid. (Exception: BRS members do not receive these contributions until they have served 60 days.) You don’t have to contribute any money to your TSP account to receive these contributions, but they are subject to “vesting,” which means you have to work a certain amount of time before you’re entitled to these contributions.
Agency/Service matching contributions
If you’re a FERS or eligible BRS participant, you receive Agency/Service Matching Contributions on the first 5% of pay you contribute every pay period. The first 3% is matched dollar-for-dollar by your agency or service; the next 2% is matched at 50 cents on the dollar. This means that when you contribute 5% of your basic pay, your agency or service contributes an amount equal to 4% of your basic pay to your TSP account. Together with the Agency/Service Automatic (1%) Contribution given to you, your agency/service puts in a total of 5%. Keep in mind, though, that if you stop your employee contributions, your Agency/Service Matching Contributions will also stop, but Agency/Service Automatic (1%) Contributions continue to go into your account. You can contribute more than 5%, but your agency/service only matches the first 5% you contribute. If you’re able to contribute enough to reach the IRS contribution limit, make sure you don’t reach that limit before the end of the calendar year. Agency/Service Matching Contributions are based on the amount of employee contributions that you make each pay period. If there are no employee contributions in a pay period, there can be no Agency/Service Matching Contributions.
BRS participants who began service on or after January 1, 2018, begin receiving matching contributions after two years of service.
CSRS and non-BRS uniformed services participants do not receive matching contributions.
| Your Biweekly Contribution | Automatic 1% Contribution | Agency Matching Contribution | Total Contributions |
|---|---|---|---|
| 0% | 1% | 0% | 1% |
| 1% | 1% | 1% | 3% |
| 2% | 1% | 2% | 5% |
| 3% | 1% | 3% | 7% |
| 4% | 1% | 3.5% | 8.5% |
| 5% | 1% | 4% | 10% |
| 5% + | 1% | 4% | Your % + 5% |
Catch-up contributions
Starting the year you turn 50, you become eligible to save even more by contributing toward the catch-up limit.
Here’s how it works:
- If you’re turning 50 or older and exceed the IRS elective deferral (or annual addition) limit, then your contributions will automatically start counting toward the IRS catch-up limit. Just add any contributions toward the catch-up limit in the same place you manage your other TSP contributions.
- Your election will carry over each year unless you submit a new one.
- If you’re eligible for an agency or service match, contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of your salary. (BRS participants, if you reach the annual additions limit, you can still make catch-up contributions, but they won’t be matched.)
- You may start, stop, or change your contributions at any time. If you choose not to contribute toward the catch-up limit, you should adjust your TSP contributions accordingly.
If you’re a uniformed services member and enter a combat zone, your contributions toward the catch-up limit must be Roth. The TSP cannot accept traditional tax-exempt contributions toward the catch-up limit. You also cannot contribute toward the catch-up limit from incentive pay, special pay, or bonus pay.
If you’re contributing to both a civilian and uniformed services member account, the limits apply to the total you contribute to both accounts during the year.
