2026 TSP, IRA, & HSA Contributions
- Tyler Weerden
- 12 hours ago
- 9 min read
Updated: 2 minutes ago
The Internal Revenue Service has released the 2026 retirement plan contribution limits and other key numbers for investment accounts. Contribution limits for employer sponsored plans like the Thrift Savings Plan (TSP), Individual Retirement Accounts (IRA), and Health Savings Accounts (HSA) are all increasing.
Here’s the breakdown.
TSP & other employer sponsored plans (401(k), 403(b), 457(b))
*Based on 26 pay dates in 2026.
TSP (under age 50): $24,500 ($943 per pay period). Yes, $943 (x) 26 = $24,518, but TSP will adjust the 26th contribution to ensure you don’t exceed $24,500.
TSP (age 50-59): $32,500 ($1,250 per pay period). The $32,500 consists of the regular $24,500 plus an $8,000 catch-up for those who will be age 50 at the end of 2026. Note: You do not have to be age 50 on January 1, 2026 to start making these higher contributions – you just have to be age 50 on 12/31/26. $1,250 (x) 26 pay periods = $32,500.
TSP (age 60-63): $35,750 ($1,375 per pay period). $24,500 regular + the new additional catch-up which is $11,250 for 2026. This applies to anyone turning age 60, 61, 62, or 63 in calendar year 2026.
TSP (age 64+): $32,500 ($1,250 per pay period). The $32,500 consists of the regular $24,500 plus an $8,000 catch-up for those who will be age 50 at the end of 2026. Oddly enough, the “super catch-up” for those age 60, 61, 62, 63 stops once you turn 64. Because...Congress said so.
MANDATORY Roth Catch-Up Contributions
Section 603 of the SECURE Act 2.0 requires that catch-up contributions be made to the Roth “bucket” of your TSP if your Social Security earnings from your federal employment (Box 3 on your W-2) in the prior tax year are above $150,000.
When we're talking about prior earnings and contributions to TSP, we're talking about the earnings only from your federal job. There's a get out of jail free card if you're starting at a brand new employer. Why? Because you don't any earnings from last year to trigger the mandatory Roth.
Here's an example.
If you (1) leave federal employment in 2025, (2) made more than $150,000 in your federal job, (3) join a new company in 2026, and (4) they offer a 401(k)...your catch-up contributions DO NOT have to go into the Roth 401(k) at your new employer. Again, you have no earnings from the prior year at that new employer to trigger the mandatory Roth rule.
From the IRS: “The Roth catch-up wage threshold for 2025, which under section 414(v)(7)(A) is used to determine whether an individual’s catch-up contributions to an applicable employer plan for 2026 must be designated as Roth contributions, is increased from $145,000 to $150,000.”
This ONLY applies to catch-up contributions above the base level contribution of $24,500. Younger than 50 this year? Don't worry about any of this. For those who will be at least age 50 making the $8,000 catch-up, or those who will be 60, 61, 62, or 63 making the $11,250 "super catch-up" - if you made more than $150,000 in your federal job last year, your catch-up will go to the Roth side of your TSP.
Income Limits
There are NO income limits for Roth TSP contributions.
There ARE income limits for Roth IRA contributions. See below for more information on IRAs.
When to Make the Changes for TSP (*specific to Department of State direct hires)
You want these new contributions to be reflected on the first pay date in calendar year 2026, which for most agencies is not the first pay period of 2026.
To get the timing right, make your changes so that they are “effective” in PP25. PP25 ends 12/27/25 and will be paid 1/8/26 (the first pay date in 2026).
You can go into Employee Express and select any effective date 90-days out. If you submit the TSP contribution change in PP24, it will become “effective” on the first day of PP25, and will be paid 1/8/25. Note: Your agency pay periods and payroll processors may differ. Check with your agency for proper implementation.
TSP Matching Contributions
If you contribute 5% of your basic pay, you’ll get a 5% match – free money (& time)! The 5% total match consists of 1% agency automatic contribution + 4% agency matching.
WARNING: Do not max out your $24,500 elective deferral limit early if you plan to stay employed by the federal government for all of 2026. If you hit this limit before the end of the year, you’ll only get the 1% Agency Automatic contribution and miss out on the other 4% for the remainder of the year.
The employer match DOES NOT count against the elective deferral amount you’re allowed to contribute. When you see the annual contribution limits ($24,500, $32,500, & $35,750) - this is the amount YOU personally can contribute, separate from any matching contributions.
Regardless of whether you contribute your portion towards Roth TSP or traditional TSP, you WILL still get the employer match. As of now, your matching contributions will go into your traditional TSP.
Retiring in 2026
If you’re retiring in 2026, you may want to max out your TSP by the time you retire, since you’ll no longer be able to contribute when you separate from federal service. When I say that you’ll no longer be able to contribute, I mean contribute new dollars via payroll deduction. You can still rollover/transfer money from an eligible retirement account into the TSP even after separation.
Your decision to max out early depends on your ability to do that without leaving yourself short (cash flow) and your post-retirement employment situation.
(1) Leaving federal service + won’t work another job: If you’re looking to get the most money into a tax-advantaged account, you should try to max out your TSP by the time you retire.
(2) Leaving federal service + will work another job that offers a 401(k) or 403(b): Your TSP contributions and 401(k) / 403(b) contributions will be combined to reach the annual elective deferral limit. So, if you’re age 55 and can contribute $32,500 to an employer plan, you could contribute $20,000 to your TSP and $12,500 to your new employer’s 401(k) / 403(b) for a combined total of $32,500.
(3) Leaving federal service + will work another job that offers a 457(b): Governmental 457(b) plans (typically offered by local/state government employers) are special for a few reasons. One of those reasons is the fact that the 457(b) contributions DO NOT net against the TSP/401(k)/403(b) contributions. This means you could contribute $24,500 to your TSP and $24,500 to a 457(b) if your new employer offers it.
Individual Retirement Account (IRA)
An important distinction federal employees need to know is that an IRA is completely separate from their TSP. The TSP is an employer sponsored retirement plan with its own set of rules. An IRA is a tax-advantaged retirement account that anyone can open on their own. An IRA can be opened at any low-cost custodian like Vanguard, Fidelity, or Schwab (examples, not advice). The “I” in IRA stands for individual, which means no joint IRAs.
2026 IRA Contribution Limits
IRA (under age 50): $7,500
IRA (age 50+): $8,600 – if you will be at least age 50 on 12/31/26. The 2026 IRA catch-up amount is $1,100. The IRA catch-up amount was frozen at $1,000 since the early 2000s. This inflation adjustment is another change that came with the SECURE 2.0 Act.
This contribution limit is applied across all of your IRAs. The IRS views all of your IRAs as one giant IRA bucket, regardless of how many accounts you have, which custodians you use, or the tax treatment you choose (Roth vs traditional).
For example, if you’re under age 50 and want to invest $7,500 in 2026, you could technically make these contributions:
Vanguard Traditional IRA: $1,000 contribution
Fidelity Roth IRA: $2,000 contribution
Schwab Traditional IRA: $2,000 contribution
Robo Advisor Traditional IRA: $1,000 contribution
Big Bank Roth IRA: $1,500 contribution
= $7,500 dollars went into your total IRA bucket.
Again, there ARE income limits for Roth IRA contributions. There ARE NOT income limits for Roth TSP contributions.
Roth IRA Contribution Income Limits
There is an income phase-out for the ability to make direct Roth IRA contributions.
With the income levels below, we're talking about Modified Adjusted Gross Income (MAGI). Unfortunately, there are many many different MAGIs depending on what you're trying to calculate.
For Roth IRA contributions, Modified Adjusted Gross Income (MAGI) =
Start with your AGI (Form 1040, line 11)
(+) IRA deduction (Schedule 1, line 20)
(+) Student loan interest deduction (Schedule 1, line 21)
(+) Savings bond interest that's excludable (Form 8815, line 14)
(+) Employer provided adoption benefits excluded from income (Form 8839, line 28)
(+) Foreign earned income and/or housing excluded from income (Form 2555, line 45)
(+) Foreign housing deduction (Form 2555, line 50)
(-) Income from converting traditional to Roth IRA (Form 1040, line 4b)
(-) Rollovers from qualified retirement plans to a Roth IRA (Form 1040, line 5b).
Single/Head of Household
MAGI below $153,000 = Full contribution
MAGI between 153,000 - 168,000 = Reduced contribution
MAGI greater than or equal to 168,000 = No contribution
Married Filing Jointly
MAGI below $242,000 = Full contribution
MAGI between $242,000 - $252,000 = Reduced contribution
MAGI greater than or equal to $252,000 = No contribution
Married Filing Separately
MAGI below $0 = Full contribution
MAGI between $0 - $10,000 = Reduced contribution
MAGI greater than or equal to $10,000 = No contribution
If your income makes you ineligible from making a regular Roth IRA contribution, the “backdoor Roth IRA” method may be a solution for you.
Traditional IRA Deductibility
You may be able to deduct your traditional IRA contributions. A traditional IRA deduction lowers your taxable income. Your ability to deduct traditional IRA contributions depends on two things: (1) were you and/or your spouse covered by a retirement plan at work, and (2) your Modified Adjusted Gross Income (MAGI).
For traditional IRA deductibility, Modified Adjusted Gross Income (MAGI) =
Start with your AGI (Form 1040, line 11)
(+) IRA deduction (Schedule 1, line 20)
(+) Student loan interest deduction (Schedule 1, line 21)
(+) Savings bond interest that's excludable (Form 8815, line 14)
(+) Employer provided adoption benefits excluded from income (Form 8839, line 28)
(+) Foreign earned income and/or housing excluded from income (Form 2555, line 45)
(+) Foreign housing deduction (Form 2555, line 50)
Single/Head of Household/Qualifying Surviving Spouse + you ARE covered by a workplace retirement plan:
MAGI below $81,000 = Full deduction
MAGI between $81,000 - $91,000 = Reduced deduction
MAGI greater than or equal to $91,000 = No deduction
Single/Head of Household/Qualifying Surviving Spouse + you ARE NOT covered by a workplace retirement plan:
You can take a traditional IRA deduction regardless of your MAGI.
Married Filing Jointly + spouse making the contribution IS covered by a workplace retirement plan:
MAGI below $129,000 = Full deduction
MAGI between $129,000 - $149,000 = Reduced deduction
MAGI greater than or equal to $149,000 = No deduction
Married Filing Jointly + spouse making the contribution IS NOT covered by a workplace retirement plan but their spouse IS covered by a workplace retirement plan:
MAGI below $242,000 = Full deduction
MAGI between $242,000- $252,000 = Reduced deduction
MAGI greater than or equal to $252,000 = No deduction
Married Filing Separately + spouse making the contribution IS covered by a workplace retirement plan:
MAGI below $10,000 = Reduced deduction
MAGI greater than or equal to $10,000 = No deduction
Married Filing Separately + spouse making the contribution IS NOT covered by a workplace retirement plan but their spouse IS covered by a workplace retirement plan:
MAGI below $10,000 = Reduced deduction
MAGI greater than or equal to $10,000 = No deduction
NEITHER you nor your spouse are covered by a workplace retirement plan:
You can take a traditional IRA deduction regardless of your MAGI.
Remember, you can still make a full traditional IRA contribution if you exceed the income limits, but you cannot take a deduction on your tax return. In this scenario, the contribution will need to be treated and tracked as a non-deductible contribution (IRS Form 8606).
Health Savings Accounts (HSA)
The amount you can contribute to an HSA is based on your High-Deductible Health Plan coverage (self-only vs. self plus one & family). Also, the amount you personally can contribute is reduced by the premium pass-through ($1,000 self/$2,000 family for FEHB GEHA HDHP in 2026). The premium pass-through is a portion of your premium that gets deposited back in your HSA. For the full rundown on HSAs, click here.
The HSA catch-up contribution for 2026 is $1,000. Note: The age for HSA catch-up contributions is 55+, not age 50+ like it is with IRAs and employer plans. That would make too much sense.
HSA Self-Only (under age 55): $4,400 minus the premium pass-through amount = your total contribution.
HSA Self-Only (age 55+): $5,400 minus the premium pass-through amount = your total contribution.
HSA Self Plus One & Family (under age 55): $8,750 minus the premium pass-through amount = your total contribution.
HSA Self Plus One & Family (one spouse age 55+): $9,750 minus the premium pass-through amount = your total contribution. Each eligible spouse must contribute their $1,000 catch-up to their own HSA.
HSA Self Plus One & Family (both spouses age 55+): $10,750 minus the premium pass-through amount = your total contribution. Each eligible spouse must contribute their $1,000 catch-up to their own HSA.
While I've never contributed anything other than whole dollar amounts to my HSA via employee express, I'm told that they will allow decimals for the contribution. In order to not over contribute but hit the maximum, you can contribute these amounts bi-weekly:
IMPORTANT: You must know the eligibility rules for contributing towards an HSA before opening the account and making a contribution. Learn more about HSAs here.
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