How to Change Your TSP Contribution Amount
A clear guide for federal employees to change their Thrift Savings Plan (TSP) contribution amount. Understand the process and key considerations.
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for federal employees. Understanding how to manage your contributions is important for maximizing this benefit. This guide explains how participants can modify their TSP contribution amounts or types. It outlines the necessary preparation, procedural steps, and other important considerations for making these adjustments.
Preparing to Change Your TSP Contributions
Before changing your Thrift Savings Plan contributions, gather necessary access credentials and decide on your desired adjustments. You will primarily use your employing agency’s payroll system to alter the amount deducted from your salary, and the official TSP website for other related settings. Having your login credentials readily available for both systems will streamline the process.
Accessing your agency’s electronic payroll system, such as MyPay or Employee Express, requires your username, password, and often multi-factor authentication. The official TSP website (tsp.gov) requires your TSP account login credentials, including a username, password, and a one-time passcode sent to your registered email or phone for security. Determine the specific percentage of your salary or the exact dollar amount you wish to contribute per pay period. Also, decide on your preferred allocation between Traditional (pre-tax) TSP and Roth (after-tax) TSP contributions.
Steps to Adjust Your TSP Contributions
Adjusting your TSP contributions involves two distinct systems: your employing agency’s payroll portal and the TSP’s My Account online platform. Changing the dollar amount or percentage of your pay contributed to TSP is primarily handled through your agency’s payroll system. This system manages your bi-weekly deductions and allows you to specify the gross amount or percentage of your salary you wish to contribute.
Once logged into your agency’s payroll system, locate the section related to retirement contributions or TSP deductions, often labeled “Thrift Savings Plan” or “Payroll Deductions.” Here, you will find options to enter your new contribution percentage or a specific dollar amount. You will also select whether these contributions are designated as Traditional or Roth. After inputting your desired changes, the system will present a review screen for verification before final submission.
To manage the allocation of your contributions among the various TSP funds (G, F, C, S, I, L Funds), or adjust the Traditional versus Roth allocation, access the official TSP website at tsp.gov. After logging into your My Account, navigate to the “Contributions” or “Contribution Allocations” section. Within this area, you can specify the percentage of your new contributions that will go into each fund or how your Traditional and Roth contributions are split. A final review page will display your selections before you confirm and submit these allocation changes.
Key Considerations for TSP Contribution Changes
When modifying your TSP contributions, several factors beyond the procedural steps warrant attention, particularly annual limits and the timing of changes. The Internal Revenue Service (IRS) sets annual contribution limits for the TSP, which are subject to change each year. For 2025, the elective deferral limit for regular employee contributions is $23,500.
Participants aged 50 and older are eligible to make additional “catch-up” contributions. For 2025, the standard catch-up contribution limit is $7,500, allowing a total contribution of $31,000 for eligible participants. A special “super” catch-up contribution limit of $11,250 applies for those aged 60, 61, 62, or 63 in 2025, bringing their maximum total contribution to $34,750. The TSP utilizes a “spillover” method, meaning that once you reach the regular contribution limit, any further contributions automatically count towards your catch-up limit, simplifying the process.
Changes to your TSP contribution amount typically become effective at the start of the next pay period following processing by your employing agency’s payroll system. Agencies have specific payroll cut-off dates, so submitting your change well in advance of a new pay period ensures it takes effect as desired. While you initiate the change through your agency’s system, the agency’s payroll department is responsible for implementing the deduction from your salary and remitting it to the TSP.