Federal employees often wonder if they can contribute to both an IRA and the TSP. The answer is yes, they can! However, there are some caveats. Here are some additional details on contributing to both types of retirement savings accounts.<\/p>\n
Contributing to an IRA Outside of the Thrift Savings Plan (TSP)<\/p>\n
The\u00a0TSP states<\/a>, \u201cYour participation in the TSP does not affect your eligibility to contribute to an IRA. However, the Internal Revenue Code (IRC) establishes limits on the dollar amount that you can contribute to eligible employer plans like the TSP and to individual retirement accounts such as traditional IRAs and Roth IRAs. These limits may change from year to The TSP also adds on its traditional and Roth contributions page<\/a>, \u201cIf you also contribute to a Roth IRA outside of the TSP, it has a separate limit that doesn\u2019t affect how much you can contribute to your Roth TSP balance.\u201d<\/p>\n Once your household income reaches a certain threshold, you may not be able to deduct IRA contributions. The\u00a0IRS has more details about this on its website<\/a>, and a tax advisor can help you to make this determination for your household.<\/p>\n The TSP also adds<\/a>, \u201cYou should also be aware that, depending on your personal financial situation, contributing to the Roth TSP may affect your eligibility to contribute to a Roth IRA.\u201d<\/p>\n So what are these contribution limits for the TSP and IRAs for 2026?<\/p>\n 2026 TSP Contribution Limits<\/p>\n The\u00a02026 annual contribution limit for the TSP is $24,500 per year<\/a>, an increase of 4.3% over the\u00a02025 annual limit<\/a>, so it represents a great savings opportunity for federal employees who can afford to contribute the maximum annual amount to their TSP accounts.<\/p>\n Catch-up contributions in 2026 are as follows:<\/p>\n For federal employees aged 50 and above, the catch-up contribution limit is $8,000 ($32,500 total annual TSP contribution in 2026 for those in this age group).<\/p>\n Higher Catch-up Limit for Specific Ages: Employees aged 60-63 will have a higher catch-up contribution limit of $11,250 this year ($35,750 total).<\/p>\n 2026 IRA Contribution Limits<\/p>\n The 2026\u00a0IRA annual contribution limit<\/a>\u00a0is $7,500 per year, up from $7,000 per year in 2024. The additional catch-up contribution limit for individuals 50 and over is $1,100 ($8,600 total).<\/p>\n Total 2026 Annual Retirement Contribution Opportunity<\/p>\n Between the 2026 TSP and the IRA contribution limits, federal employees can potentially save as much as $32,000 per year in the two account types. If you add in all possible catch-up contributions, it is $44,350 across both types of accounts (that figure assumes the special \u201csuper catch-up\u201d amount for ages 60-63 in the TSP). <\/p>\n For those who can afford to invest this much into retirement, it will go a long way towards growing into\u00a0millions of dollars<\/a>\u00a0by the time they are retirement age. The latest TSP millionaires report<\/a> reveals that not only has the number of TSP millionaires continued to grow to record highs, but this group has accomplished this milestone through consistent investment in the TSP throughout their federal careers. Notably, the average length of time that federal employees in this category have been investing is 27.77 years.<\/p>\n Other Important Factors<\/p>\n Federal employees who plan on contributing to a Roth IRA must be aware that different eligibility rules for Roth IRAs could come into play based on their annual incomes. If an individual makes over a certain amount of money each year, he or she may have limited or no eligibility to contribute to a Roth IRA.<\/p>\n 2026 Income Limits for Roth IRA Contributions<\/p>\n MAGIContribution LimitSingle individuals<$153,000Under age 50: $7,500 A qualified tax advisor can guide you in determining if you are eligible to contribute to a Roth IRA based on your financial situation.<\/p>\n Conclusion<\/p>\n The information provided here offers a basic overview of retirement contribution guidelines. However, depending on your financial situation or the type of investment you\u2019re considering, these guidelines can quickly become more intricate. For personalized advice and assistance, it\u2019s highly recommended to consult with a qualified tax professional and\/or financial planner.<\/p>\n \u00a9 2026 Ian Smith. All rights reserved. This article
year.\u201d<\/p>\n
50 and older: $8,600\u2265$153,000 but <$168,000Partial contribution\u2265$168,000Not eligibleMarried
(filing joint returns)<$242,000Under age 50: $7,500
50 and older: $8,600\u2265$242,000 but <$252,000Partial contribution\u2265$252,000Not eligibleSource: IRS<\/a><\/p>\n
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