The Thrift Savings Plan is the military’s 401(k). Its yearly contribution limits are set by the IRS and usually rise each year. The 2027 limits are due shortly. The IRS normally announces them in late October or November.
The 2026 limits
| Limit | 2026 |
|---|---|
| Your own contributions, traditional and Roth combined | $24,500 |
| Extra catch-up for age 50 and over | $8,000 |
| Higher catch-up for ages 60 to 63 | $11,250 |
| Total including government and tax-exempt contributions | $72,000 |
The 2027 figures will be added here once the IRS publishes them. Limits typically rise by a few hundred to a thousand dollars a year, in step with inflation.
How much a service member can really put in
For most junior members, the limit is not the problem. An E-5 with over 6 years earns $49,320 a year in basic pay. Saving the full $24,500 would take half of it. More often the question is whether you contribute enough to get the full government match.
The Blended Retirement System match
Members under the Blended Retirement System, which covers everyone who joined since 2018, receive:
- An automatic government contribution of 1% of basic pay, even if you put in nothing
- Matching contributions of up to 4% more when you contribute at least 5% of basic pay yourself
For that E-5, contributing 5% of basic pay, about $205.50 a month, brings in about $205.50 a month from the government as well. That is roughly $2,466 a year in free money. Contributing less than 5% leaves part of the match unclaimed.
Combat zone contributions
Pay earned in a combat zone is excluded from federal income tax. TSP contributions from that pay count toward the higher total limit of $72,000 rather than only the $24,500 employee limit. Roth contributions from tax-free combat pay are never taxed, which makes deployment a valuable time to save.
Traditional or Roth?
Traditional contributions lower your taxable income now. Roth contributions are taxed now but come out tax-free in retirement. Many junior members, who pay little or no federal income tax because of the standard deduction, choose Roth, since the tax saving from traditional contributions would be small.
Common questions
Does the match count toward my own limit? No. Government contributions count only toward the total limit, not the $24,500 employee limit.
Can I change my contribution at any time? Yes, through myPay. Changes usually take effect within a pay period or two.
Does BAH count for the match? No. The match is based on basic pay only.