In this episode, Dan and Ed explain the upcoming 2026 change requiring high-earning federal employees to make TSP “catch-up” contributions only to the Roth TSP. They also discuss how the $145,000 wage threshold is determined, how dual employment impacts eligibility, and what federal employees need to know about making traditional vs. Roth contributions. Plus, they cover how these changes affect Roth IRA eligibility and rollover options in retirement.
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FedLife Podcast (Ep.147): FedLife Podcast: Mandatory Roth TSP Catch-Up Contributions Coming in 2026 – What Federal Employees Need to Know
Join us as Dan and Ed break down the upcoming Roth TSP “catch-up” rule, how the $145,000 earnings threshold is calculated, who it impacts, and what it means for federal employees nearing retirement.
In this episode, you'll discover:
- Where do your “catch-up” contributions have to go starting January 1, 2026?
- Which TSP participants are affected by the $145,000 earnings threshold?
- How are earnings calculated for federal employees under this rule?
- How does dual federal and military service affect your wage threshold?
- What happens if you try to make traditional “catch-up” contributions but are over the wage limit?
- Can Roth TSP contributions disqualify you from contributing to a Roth IRA?
- Will high-income retirees still be able to roll over Roth TSP funds into a Roth IRA?
Source Article:
https://stwserve.com/mandatory-roth-tsp-catch-up-contributions-take-effect-january-1-2026/
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