50 or Older? Don't Miss $7,500 in Tax-Deferred Savings This Year

Q2 Deadline Looming for 2025 TSP Maximizers

March 28, 2025

If you're a federal employee or uniformed service member turning 50 or older this year, you’re eligible for catch-up contributions—a powerful way to supercharge your Thrift Savings Plan (TSP) as retirement approaches.

Let’s break it down.

2025 Contribution Limits

  • Regular TSP Limit: $23,000

  • Catch-Up Contribution (age 50+): $7,500

  • Total Possible Contribution: $30,500

Additionally, your agency’s automatic and matching contributions don’t count toward these limits.

Fictional Example: How One Federal Employee Is Taking Advantage

Meet Carla, a 57-year-old GS-14 working in D.C.

She recently increased her TSP contributions to $1,200 per pay period to stay on track to maximize her $30,500 limit by year-end. With about 10 years left before retiring under FERS, just her catch-up contributions could add over $100,000 to her retirement nest egg (including market growth).

Her strategy: contribute steadily throughout the year to avoid missing agency match—and gain more peace of mind heading into retirement.

Strategy Spotlight: Tailor Your Catch-Up Based on Your Goals

  • Retiring in 5–10 Years?
    Prioritize stability and preservation—this might be a good time to increase allocations to the G Fund or L Income Fund while still taking advantage of catch-up space.

  • Still in Growth Mode?
    Use the extra contribution room to load up on C Fund or S Fund for long-term growth potential—especially if you have the risk tolerance and time to ride out short-term market swings.

Quick Tips for Maximizing Before Q2

  1. Know your numbers:
    To hit $30,500 over 26 pay periods, aim for about $1,173 per paycheck.

  2. Automate smartly:
    Catch-up contributions are now seamless in TSP—no separate election needed. Just make sure your total contribution rate is high enough to reach your target by year-end.

  3. Don’t miss matching:
    Spreading contributions evenly ensures you don’t max out too early and miss out on agency matching later in the year.