As you look to plan for retirement in 2022, a limit increase may just help as you as you and your family seek to maximize your tax free retirement income. In a recent press release, the IRS announced a $1,000 contribution limit increase to the Thrift Savings Plan. For most members of the military, this means that the new contribution limit is $20,500.
In the past, we have looked at some of the benefits of the TSP. It is a great way to generate non-taxable retirement income as you look to ensure that you and your family are financially secure in your later years. If you are enrolled in the Blended Retirement System, you are eligible for a contribution matching which will help you as you look to increase the value of your TSP. Bear in mind that the $6,000 Roth IRA contribution is also an option as you look to prepare your family financially and you can contribute until April 15th of the following year.
If you are deployed to a combat zone, you may have a higher contribution limit. When deployed to a combat zone, the IRS limit for TSP contributions is $57,000.
We hope that you enjoyed this update and look to maximize your TSP contributions in 2022!
Enjoy the content of this post? Subscribe below to get the latest content delivered to your inbox!