What This Page Is
The Thrift Savings Plan is the single most powerful retirement vehicle most service members have access to. Unlike housing allowance and base pay, TSP rules are federal — they do not vary by state, duty station, or even component. The same contribution limits, the same matching formula under the Blended Retirement System, and the same six core funds apply to every active-duty service member, drilling reservist, and National Guard member nationwide.
This guide pulls together the 2026 numbers, the BRS match math, the fund lineup, and the rules that actually trip people up — combat-zone contributions, the new Roth catch-up rule, the year-you-turn-64 trap. Every figure is sourced inline.
Last updated: May 2026. Limits verified against IRS Notice 2025-67 (released November 2025) and the TSP.gov contribution-limits page. The annual additions limit for 2026 is $72,000; the elective deferral limit is $24,500.
2026 TSP Contribution Limits at a Glance
| Limit | 2026 Amount | 2025 Amount | Authority |
|---|---|---|---|
| Elective deferral limit (your combined traditional + Roth) | $24,500 | $23,500 | IRC §402(g); IRS Notice 2025-67 |
| Catch-up — age 50+ (most) | $8,000 | $7,500 | IRC §414(v) |
| Enhanced catch-up — ages 60–63 (born 1963–1966) | $11,250 | $11,250 | SECURE 2.0 Act §109 |
| Annual additions limit (employee + employer; combat-zone cap) | $72,000 | $70,000 | IRC §415(c); IRS Notice 2025-67 |
| Total max — age 50+ on basic pay (deferral + catch-up) | $32,500 | $31,000 | Sum of above |
| Total max — age 60–63 on basic pay (deferral + super catch-up) | $35,750 | $34,750 | Sum of above |
What "elective deferral" means in practice: the $24,500 cap is the most you can contribute from your own paycheck (any combination of traditional and Roth). Government BRS contributions (the 1% automatic and up to 4% match) do not count against this limit — they are on top.
BRS Matching — The Free 5%
If you have a Date of Initial Entry into Military Service (DIEMS) of January 1, 2018 or later, you are in the Blended Retirement System. Under BRS, the federal government contributes to your TSP as follows (5 CFR §§1600.34, 1600.37; effective rates after October 2020 auto-enrollment increase):
| You contribute | Service automatic (1%) | Service match | Total going into your TSP |
|---|---|---|---|
| 0% | 1% | 0% | 1% |
| 1% | 1% | 1% | 3% |
| 2% | 1% | 2% | 5% |
| 3% | 1% | 3% | 7% |
| 4% | 1% | 3.5% | 8.5% |
| 5% (sweet spot) | 1% | 4% | 10% |
| 10% | 1% | 4% (no extra) | 15% |
The match math: dollar-for-dollar on the first 3% you contribute, then 50 cents on the dollar on the next 2%. Contributing more than 5% of basic pay does not get you any additional match — but it does fill your retirement account faster, which still matters.
- Service automatic 1% begins after 60 days of service.
- Service matching begins after 24 months of service. Before that, you get the 1% automatic only.
- Vesting: service automatic contributions vest at 2 years of service. Service matching contributions and your own contributions vest immediately.
- Members covered by the legacy High-3 retirement system (DIEMS before January 1, 2018, no opt-in) receive no government TSP contributions — the trade-off is the larger High-3 pension.
Don't max out too early. If you front-load your $24,500 by July, you stop contributing in August — and the government stops matching. To capture the full 5% match for the year, contribute at least 5% of basic pay every pay period through December. The "max" target percentage that lands you exactly at $24,500 in December depends on your monthly basic pay; check the calculator for your specific number.
Traditional vs Roth TSP
TSP offers two contribution flavors. They affect when you pay income tax, not whether — and the choice can be worth tens of thousands of dollars over a career.
Traditional TSP
Contribute pre-tax now. Your taxable income drops by the contribution amount this year. Withdrawals in retirement are taxed as ordinary income.
Best when: you expect a lower tax bracket in retirement than during service, or you want immediate tax savings to offset PCS expenses.
Roth TSP
Contribute after-tax now. No deduction this year. Qualified withdrawals (after age 59½ and 5 years of Roth participation) are completely tax-free — including all growth.
Best when: you are early-career and in a low tax bracket now (E-1 to E-6, junior officer) and expect to be in a higher bracket later. Service members in a Combat Zone Tax Exclusion month can effectively contribute Roth dollars that were never taxed and never will be — the most powerful TSP move available.
Government match is always traditional, regardless of how you elect your own contributions. So even if you contribute 100% Roth, the agency 1% automatic and the matching 4% land in the traditional bucket and will be taxed when withdrawn.
The TSP Funds — Six Real Choices
TSP offers five core funds plus a family of Lifecycle (L) target-date funds. Expense ratios are among the lowest in the retirement industry — typically a few basis points (hundredths of a percent), versus 50–150 basis points for retail target-date funds. Source: tsp.gov fund pages.
GGovernment Securities Investment Fund
Invested in non-marketable U.S. Treasury securities issued specifically to TSP. Cannot lose principal in nominal terms — the rate is set monthly to the average of medium- and long-term Treasury yields. The trade-off: long-term real returns barely outpace inflation. Best as a short-horizon parking spot or a stability sleeve in retirement, not as a primary growth vehicle for a 20-something. If your TSP is 100% G Fund and you are under 40, you are very likely under-allocated to growth. Run the math.
FFixed Income Index Investment Fund
Tracks the Bloomberg U.S. Aggregate Bond Index — investment-grade U.S. government, corporate, and mortgage-backed bonds. Higher long-term return potential than G Fund but does carry interest-rate risk: F Fund lost roughly 13% in 2022 when rates spiked. A small F Fund allocation (5–15%) helps diversify a stock-heavy portfolio.
CCommon Stock Index Investment Fund
Tracks the S&P 500 — 500 large-cap U.S. companies. Historical real return ≈ 7% annualized over rolling 30-year periods. The default growth engine for most service members. Volatility is real: drawdowns of 30–50% have happened (2000–02, 2008, 2020, 2022). Time horizon matters more than market timing.
SSmall Cap Stock Index Investment Fund
Tracks the Dow Jones U.S. Completion Total Stock Market Index — every U.S. publicly traded stock not in the S&P 500, primarily small- and mid-cap. Higher long-term expected return than C Fund but with bigger swings. A common pairing: 80% C / 20% S to approximate a total-U.S.-market exposure (since the C+S combination weighted by market cap is essentially the entire investable U.S. equity market).
IInternational Stock Index Investment Fund
Tracks the MSCI ACWI IMI ex USA ex China ex Hong Kong index (transitioned in 2024). Coverage spans developed and emerging markets across roughly 5,000 non-U.S. companies — Europe, Japan, Canada, Australia, India, Brazil, etc. Currency-unhedged, so dollar strength/weakness adds volatility on top of equity risk. Common allocation: 10–25% of equity sleeve for diversification away from U.S.-only exposure.
LLifecycle Funds (target-date)
Pre-built mixes of G/F/C/S/I that automatically shift toward bonds and G Fund as the target year approaches. Available vintages roll out roughly every five years (e.g., L 2030, L 2035, L 2040, L 2045, L 2050, L 2055, L 2060, L 2065, L 2070; plus L Income for already-retired). Pick the one closest to the year you turn 65. If you're 30 in 2026, that's L 2060. Set it, contribute consistently, and let it rebalance for you. For most service members, an L Fund is the right answer. The biggest mistake is not picking a fund at all (defaulted to G under the legacy retirement system) or constantly switching funds chasing performance.
Combat Zone TSP — The Single Best Move in the Plan
When you are deployed to a designated Combat Zone Tax Exclusion (CZTE) area, your basic pay (and certain bonuses) for any month with at least one day of qualifying service is excluded from federal income tax. That alone is valuable. What's better is what happens with TSP.
- You can contribute up to the annual additions limit ($72,000 in 2026) from CZTE pay, far above the normal $24,500 elective deferral cap.
- Tax-exempt CZTE money contributed to Roth TSP creates the rarest of retirement assets: dollars that were never taxed going in and will never be taxed coming out (assuming qualified withdrawal rules are met).
- Tax-exempt CZTE money contributed to traditional TSP retains its tax-exempt character on the contribution side, but earnings on those contributions are taxed at withdrawal.
- The annual additions limit includes agency contributions. Plan your contribution percentage so that your contributions plus the 1% automatic and 4% match together do not exceed $72,000, or you'll lose match dollars.
- Catch-up contributions (age 50+) made from CZTE pay must be Roth regardless of income (tsp.gov contribution-limits page).
- The TSP allows up to two contribution sources of CZTE pay per year. Confirm with your finance office before deployment to ensure your election is captured correctly.
Worked example. An E-6 with 10 years TIS deployed for the full year, basic pay roughly $4,500/month. Twelve months of CZTE basic pay = ~$54,000 fully tax-exempt. Contributing 100% to Roth TSP (subject to the percentage cap your service allows) puts a five-figure block of permanently tax-free growth into the account in a single year. Few civilian retirement strategies can match it.
The Roth Catch-Up Rule — New for 2026
Effective January 1, 2026, the SECURE 2.0 Act requires that catch-up contributions (age 50+) be designated as Roth if you earned more than the IRS wage threshold in the prior year. The threshold for 2026 is $150,000 in 2025 wages, indexed annually.
- If your 2025 wages were $150,000 or below: no change. Catch-up can be traditional, Roth, or a mix, exactly as before.
- If your 2025 wages were above $150,000: any catch-up contributions in 2026 (and future years) must be Roth. The TSP system handles this automatically for most participants.
- For the military wage threshold: only taxable wages count. CZTE-excluded basic pay is not "wages" for this rule. Many senior officers and warrants will fall under the threshold in any year with significant deployment time.
- If you don't already have a Roth TSP balance, your first Roth catch-up creates one automatically.
- The rule does not apply if you're in a position not eligible for TSP (rare for service members).
The Year You Turn 64 Trap
The enhanced super-catch-up of $11,250 applies only in the years you are 60, 61, 62, or 63. The year you turn 64, your catch-up limit drops back to the regular $8,000.
If you've been contributing at the rate that hits the higher $11,250 limit, and you don't lower your contribution percentage at the start of the year you turn 64, you will reach the lower catch-up limit too early and the agency will stop matching for the rest of the year — leaving thousands of match dollars on the table. This is the single most costly TSP mistake retirees-in-transition make. Adjust your contribution election in January.
How TSP Plays With State Taxes
TSP contributions and earnings are governed entirely by federal law (Internal Revenue Code, Federal Employees' Retirement System Act). Neither contributions nor distributions vary by state of legal residence, although how a state ultimately taxes your TSP distributions in retirement does vary:
- States with no income tax (AK, FL, NV, SD, TN, TX, WA, WY, NH effective 2025): no state tax on TSP withdrawals.
- States that fully exempt military retirement (most do as of 2026, including IL, PA, NY, AL, AZ, AR, IA, KS, MI, MS, NJ, OH, OK, WI, and many more): the military pension portion is exempt, but TSP itself is generally taxed under the state's normal retirement-distribution rules unless explicitly included.
- California: taxes TSP distributions to CA residents as ordinary income; no military-pension exclusion.
- For state-by-state retirement-pay treatment, see our state military pay treatment pages.
Common Service Member TSP Mistakes
- Not contributing 5%. Below 5%, you're literally turning down free money. The 1% automatic is yours for breathing; the 4% match is yours for matching. Anything below 5% leaves match dollars on the floor every pay period.
- Front-loading the limit. Hitting $24,500 in October means no contributions (and no match) in November and December. Spread it out.
- Sitting in the G Fund. The G Fund's stability is appropriate for a 60-year-old approaching withdrawal. For a 25-year-old with 35+ years until retirement, it's expected to underperform a stock-heavy allocation by hundreds of thousands of dollars over a career.
- Picking traditional when Roth is obviously better. Junior enlisted in low federal brackets should default to Roth unless they have a specific reason not to. The tax-bracket math almost always favors Roth at E-1 through E-5 pay levels.
- Not adjusting for combat-zone deployment. Failing to crank contribution percentages up before deployment (then back down after) is the most common way service members miss the chance to fund Roth TSP with permanently tax-free dollars.
- Cashing out at separation. A lump-sum withdrawal hits ordinary income tax plus a 10% early-withdrawal penalty (with exceptions). Roll the balance into an IRA or leave it in TSP — TSP's expense ratios are lower than virtually any IRA you could move to.
Run the Numbers
The right TSP percentage depends on your basic pay, which depends on your rank and time in service. Project your 2026 take-home pay including TSP contributions and BRS match in our calculator:
Official Sources
TSP.gov — Contribution Limits
Authoritative current-year limits
TSP.gov — Contribution Types
Traditional, Roth, catch-up, CZTE
DoD — Blended Retirement
Official BRS authority page
IRS — COLA Increases
Annual 402(g) and 415(c) adjustments
TSP.gov — Individual Funds
G, F, C, S, I fund details
TSP.gov — Lifecycle Funds
L Fund vintages and allocations
myPay (DFAS)
Change your TSP election
About This Guide
This page is maintained by Military Pay Guide, a veteran-owned publication. Numbers were verified against tsp.gov and IRS Notice 2025-67 in May 2026. We update this page when the IRS publishes new annual limits (typically in November of the prior year) and when material TSP rule changes take effect. Nothing on this page is personalized financial advice — for guidance specific to your situation, talk to your installation's Personal Financial Counselor (free, embedded at every Fleet & Family / Airman & Family Readiness / Army Community Service center) or a fee-only fiduciary financial planner familiar with the military compensation system.