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TSP Contribution Formula:
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The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees and members of the uniformed services. Your contribution is the amount you elect to save from your salary each pay period, plus any employer matching contributions.
The calculator uses the TSP contribution formula:
Where:
Explanation: The calculator multiplies your salary by your contribution percentage (converted to decimal) and adds any employer match to determine your total annual TSP contribution.
Details: Proper TSP contribution planning is crucial for retirement security. The 2025 contribution limit is $23,000 for regular contributions (with an additional $7,500 catch-up contribution for those 50 and older).
Tips: Enter your annual salary in USD, your contribution percentage (1-100%), and any employer match amount. All values must be valid (salary > 0, percentage between 0-100).
Q1: What are the 2025 TSP contribution limits?
A: For 2025, the elective deferral limit is $23,000, with an additional $7,500 catch-up contribution allowed for those age 50 and over.
Q2: How does employer matching work?
A: Federal agencies automatically contribute 1% of salary and match up to the first 5% of salary that you contribute dollar-for-dollar.
Q3: Should I contribute the maximum amount?
A: Contributing at least enough to get the full employer match is recommended. Contributing the maximum is ideal if your budget allows.
Q4: Are TSP contributions tax-deferred?
A: Traditional TSP contributions are made pre-tax, reducing your taxable income. Roth TSP contributions are made after-tax.
Q5: How often should I review my TSP contributions?
A: Review your contributions annually or whenever your financial situation changes significantly (promotion, raise, etc.).