It’s the most wonderful time of the year…
At long last, the IRS has released its inflation adjustments for tax-advantaged retirement accounts for 2026! Typically, these figures are released in late-October/early-November each year, so the team here at Serving Those Who Serve has been waiting with bated breath for the new numbers, and on Thursday, November 13th, they finally arrived!
As to be expected, several key limits are increasing. For federal employees, this means new opportunities to save more for retirement through the TSP and IRAs. It also means now is the perfect time to revisit your contributions before the new year begins.
Here’s a breakdown of what’s changing and how to prepare.
2026 TSP Contribution Limits
- Higher Standard Contribution Limit
- 2025: $23,500
- 2026: $24,500
- Federal employees can now contribute up to $24,500 in traditional, Roth, or combined contributions to the TSP in 2026.
- Higher Age 50+ Catch-Up Contribution
- 2025: $7,500
- 2026: $8,000
- If you’re 50 or older, you can contribute an additional $8,000 on top of the standard limit—allowing for a maximum of $32,500 in TSP savings for 2026.
- No Changes to the Super Age 60-63 Catch-Up Contribution
- The special “super catch-up” provision, created under the SECURE Act 2.0 for retirement plan participants between the ages of 60 and 63, remains unchanged at $11,250 for 2026.
- An Important Caveat: Required Roth Catch-Up Contributions for Higher Earners
- Under SECURE ACT 2.0, if your wages exceed $150,000 in 2026, all catch-up contributions must be made to the Roth option in your TSP.
(This threshold has increased from $145,000 in 2025.)
- Under SECURE ACT 2.0, if your wages exceed $150,000 in 2026, all catch-up contributions must be made to the Roth option in your TSP.
2026 IRA and Roth IRA Contribution Limits
- Higher Standard IRA/Roth IRA Contribution
- 2025: $7,000
- 2026: $7,500
- Higher Age 50+ Catch-Up Contributions for IRA/Roth IRA
- 2025: $1,000
- 2026: $1,100
- If you’re 50 or older, you can now contribute an additional $1,100 on top of the standard $7,500 IRA/Roth IRA contribution limit, allowing for a maximum of $8,600 in IRA/Roth IRA savings in 2026 (Roth IRA contributions remain subject to income eligibility).
SIMPLE IRA Adjustments
For Feds with outside self-employment income or contractor work, SIMPLE IRA contributions have also been updated:
- Higher SIMPLE IRA Standard Contribution
- 2025: $16,500
- 2026: $17,000
- Higher Age 50+ Catch-Up Contributions for SIMPLE IRA
- 2025: $3,500
- 2026: $4,000
- If you’re 50 or older, you can now contribute an additional $4,000 on top of the standard $17,000 SIMPLE contribution limit, allowing for a maximum of $21,000 in SIMPLE IRA savings in 2026.
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
What These Changes Mean for Federal Employees
The contribution limit increases may not look dramatic at first glance, but for long-term savers—especially federal employees planning for a multi-decade retirement—every additional tax-advantaged dollar matters. Higher limits allow you to capture:
- More tax-deferred (pre-tax TSP/IRA) or tax-free growth (Roth TSP/Roth IRA)
- Increased agency matching (for FERS employees) if your contributions rise early in the year
- More stability in your long-term retirement plan as inflation and costs rise
But these benefits only happen if your contributions are actually updated! Which brings us to…
YOUR Action Step: Recalculate Your 2026 TSP Contributions
I can hardly believe it either, but January is just around the corner. Now is the time to revisit your payroll elections and make a plan to increase your contributions to the new limits (or as close as you can feasibly get) before the new year. The cost of leaving your contribution unchanged could include:
- Falling short of the new maximum
- Missing out on tax-advantaged growth
- Losing some matching benefits (in other words, FREE MONEY) if you front-load your contributions unintentionally
For Feds who want to max out their TSP, here are some quick examples:
- To reach the 2026 $24,500 standard contribution limit, you’d need to contribute about $942 per pay period over 26 pay periods.
- If you’re 50 or older and want to max out both the standard and the 50+ catch-up contribution, you’d need to contribute about $1,250 per pay period to reach the full $32,500. Additionally, if your income will be over $150,000 in 2026, you’ll need to ensure that your catch-up contributions are directed to the Roth option in your TSP.
- Lastly, if you happen to be turning 60, 61, 62, or 63 during the 2026 calendar year and you want to max out both the standard and the super catch-up contribution to your TSP, you’d need to contribute about $1375 per pay period to reach the full $35,750.
If you’d like help calculating your exact per-pay-period amount—or determining whether Roth, Traditional, or a mix is right for you, the team at Serving Those Who Serve would be more than happy to walk through it with you. Give us a shout at [email protected] today for a complimentary personalized consultation.
Final Thoughts
The IRS’s 2026 adjustments offer federal employees another opportunity to strengthen their financial foundation. A small increase in your contributions today can translate into meaningful long-term growth over a federal career.
Taking a few minutes now to adjust your TSP and IRA contributions can ensure you’re fully taking advantage of these higher limits—and keeping your retirement plan on track.
If you’d like help reviewing your contribution strategy for 2026, our team at Serving Those Who Serve is here to support you.
**Written by Katelyn Murray, CFP®, ChFEBC®, FBS®, CFT-1™, ECA. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Katelyn Murray and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
