The IRS announced the new retirement plan limits on November 12, 2026. If you're wondering about TSP contribution limits 2027, here's the headline: you can put up to $25,500 into your Thrift Savings Plan next year. That's $1,000 more than in 2026.
Maybe you want to max out your TSP. Maybe you just want to know what to change before January. Either way, the details matter, especially if you're 50 or older. And if you hit the limit too early, you could lose free agency matching money.
Let's break it down. You'll see the new numbers, the math per paycheck, and what to do next. The figures come straight from the IRS (news release IR-2026-136 and Notice 2026-66).
2027 TSP Limit: What Changed From 2026
Here's the side-by-side view:
| Limit |
2026 |
2027 |
| Elective deferral (TSP, 401(k), 403(b), 457) |
$24,500 |
$25,500 |
| Catch-up, age 50+ |
$8,000 |
$8,500 |
| Max with 50+ catch-up |
$32,500 |
$34,000 |
| Higher catch-up, ages 60–63 |
See our 2026 article |
$11,750 (instead of $8,500) |
| Max with ages 60–63 catch-up |
See our 2026 article |
$37,250 |
| IRA limit |
$7,500 |
$7,500 (no change) |
| IRA catch-up, age 50+ |
$1,100 |
$1,100 (no change) |
For last year's numbers in full, see our TSP contribution limits 2026 guide.
How the 2027 TSP Limit Really Works
The $25,500 is called an "elective deferral" limit. That's just a fancy name for money you choose to put in from your paycheck. A few simple rules apply.
Traditional and Roth Share One Limit
The limit covers your traditional TSP and Roth TSP together. You can't put $25,500 in each. If you split it, say $15,000 traditional and $10,500 Roth, you've hit the cap. Not sure which type fits you? Our Roth vs traditional TSP guide can help.
Agency Money Doesn't Count
Your agency's contributions sit outside the $25,500. That includes the automatic 1% and the matching money. So a federal employee can have more than $25,500 go into their account in a year.
The Match Needs Steady Contributions
To get the full 5% from your agency, you need to contribute at least 5% of your basic pay in every pay period. Miss a pay period and you miss the match for that pay period. That detail causes problems for people who max out early. We'll get to that in a minute.
IRA Limits Are Separate
Your IRA limit is its own thing. It stays at $7,500 for 2027. You can use both an IRA and the TSP, but the TSP limit and IRA limit don't combine.
Max TSP Contribution 2027: The Per-Paycheck Math
Most federal employees get paid 26 times a year. So here's what each target looks like per paycheck:
- $25,500 limit: $25,500 ÷ 26 = about $980.77 per pay period
- $34,000 (age 50+): $34,000 ÷ 26 = about $1,307.69 per pay period
- $37,250 (ages 60–63): $37,250 ÷ 26 = about $1,432.69 per pay period
Compare that to 2026. At the old $24,500 limit, you'd put in about $942.31 per paycheck. Going to the new limit means about $38.46 more each pay period.
What Percent of Pay Is That?
Let's use a labeled example. Say a GS employee earns $90,000 (example salary).
- Pay per period: $90,000 ÷ 26 = $3,461.54
- Max contribution: $980.77 per period
- Share of pay: $980.77 ÷ $3,461.54 = about 28.3%
That's a big chunk. Not everyone can do it, and that's okay. Even getting part of the way there builds real wealth over time.
TSP Catch-Up Contribution 2027: Ages 50+ and 60–63
Catch-up contributions let older workers save extra. For 2027, you get two levels.
Age 50 and Older: $8,500
If you're 50 or older, you can add $8,500 on top of the $25,500. That brings your total to $34,000. The catch-up part alone works out to about $326.92 per paycheck ($8,500 ÷ 26).
Ages 60, 61, 62, and 63: $11,750
If you're in this window, your catch-up is $11,750 instead of $8,500. Your total can reach $37,250. That's $3,250 more than the regular 50+ limit, or about $125 more per paycheck. Check TSP.gov for how it counts your age.
How to Elect a Catch-Up
You choose catch-up contributions the same way you choose regular ones. Use TSP.gov or your agency's payroll system. TSP has an automatic catch-up feature for people 50 and older. Still, check the TSP's own announcement and your settings so nothing surprises you.
Military members have their own rules. Our guide to TSP for military members covers BRS matching and deployment contributions.
Practical Examples: Four Different Situations
These use example salaries only. Your numbers will differ.
Example 1: Starting Out ($60,000)
A new employee earns $60,000. Pay per period is $2,307.69. She contributes 10%, or $230.77 per paycheck. That's $6,000 a year. Her agency adds 5%, or $3,000. Total going in: $9,000. She's far below the limit, and that's fine.
Example 2: The Maxer ($90,000)
A GS employee earning $90,000 contributes $980.77 per paycheck for 26 pay periods. That's $25,500. His agency's 5% adds another $4,500. Total: $30,000 in a year.
Example 3: The Age 52 Saver ($110,000)
She earns $110,000. Pay per period is $4,230.77. To reach $34,000, she contributes $1,307.69 per paycheck. That's about 30.9% of pay. If that's too steep, she can pick a dollar amount that fits her budget.
Example 4: Age 61 ($130,000)
He earns $130,000. Pay per period is $5,000. At $1,432.69 per paycheck, he'd hit $37,250. That's about 28.7% of pay.
Common Mistakes With the 2027 401(k) Limit for Federal Employees
Here's what trips people up.
Mistake 1: Maxing out too early. Let's say someone earning $120,000 (example) has $4,615.38 in pay per period. She elects 40%, or $1,846.15 per paycheck. By pay period 13, she's put in about $24,000. Pay period 14 takes the last $1,500. Then contributions stop for the final 12 pay periods.
Her agency match is 4% on top of the free 1%. That's about $184.62 per period. Twelve missed periods means roughly $2,215 in lost match. A steady 21.25% every paycheck gets her to $25,500 and keeps the match all year.
Mistake 2: Thinking Roth and traditional each get a limit. They share one.
Mistake 3: Counting the match toward the limit. It doesn't count.
Mistake 4: Forgetting to update the election. Your 2026 percent may not fit 2027. A dollar amount you set might fall short too.
Mistake 5: Mixing up the IRA and TSP limits. They're different accounts with different caps.
Step-by-Step: Get Ready for 2027
You don't need to do this all today. But do it before your first 2027 pay date.
- Pick your goal. Is it $25,500, $34,000, $37,250, or something smaller? Choose what you can afford.
- Do the math. Divide your yearly goal by 26. That's your per-paycheck amount.
- Choose percent or dollars. A percent changes if your pay changes. A dollar amount stays put.
- Protect your match. Keep at least 5% of basic pay going in every pay period.
- Update your election. Use your agency's payroll system, such as Employee Express, MyPay, or NFC EPP.
- Add catch-up if you qualify. Elect it the same way you elect regular contributions.
- Check your next pay stub. Make sure the new amount shows up.
Changes apply to pay dates in calendar 2027. So set things up before the first one.
Want to pick better investments for all that money? Read our TSP fund allocation guide. Curious how the TSP compares with private plans? See TSP vs 401(k).
Bottom Line
Here's what to remember about the max TSP contribution 2027:
- The limit rises to $25,500, up $1,000 from 2026.
- Age 50+ catch-up is $8,500, for up to $34,000.
- Ages 60–63 get $11,750, for up to $37,250.
- Traditional and Roth share one limit.
- Agency contributions don't count toward it.
- Spread your contributions over all 26 pay periods to keep the full match.
- Update your election before your first 2027 pay date.
You don't have to max out to do well. Start with the match, then raise your contribution as you can. For the TSP's own announcement, visit TSP.gov. For more on pay and benefits, browse our pay info and benefits guide.