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Request a conversationTSP catch-up contributions add $8,000 a year from the year you turn 50, and Savant Wealth Management treats the $11,250 window at 60 to 63 as its own decision. It's January, the W-2 just arrived, and Box 3 (Social Security wages) from last year decides whether this year's catch-up must go in as Roth. The 2026 threshold is $150,000.
Do nothing and you keep contributing at the base $24,500 pace while the extra room expires each December. Catch-up room never carries forward. At Savant Wealth Management, advisors put each catch-up year on a short list of due dates, so a veteran in a second career decides it once, in January, with the numbers in front of them.
This guide takes the decisions in the order you face them.
Quick summary
- Read last year's W-2 Box 3 every January, and treat $150,000 as the line that makes your catch-up Roth.
- Raise your per-pay amount in January of the year you turn 50, not on your birthday.
- Mark the calendar years you turn 60, 61, 62 and 63 for the $11,250 catch-up, and reset to $8,000 at 64.
- Move catch-ups to your employer 401(k) once you separate, because the TSP takes no new contributions.
- Fund 3 to 6 months of cash and clear high-rate debt before you raise deferrals.
Step 1: Find the age that sets your limit
Most people believe the catch-up starts on the 50th birthday. The IRS rule for 2026 is different. The employee deferral limit for the TSP and a civilian 401(k) is $24,500. The catch-up is $8,000 at 50 and over, for a $32,500 total. In each calendar year you turn 60, 61, 62 or 63, the catch-up rises to $11,250, for a $35,750 total. In the year you turn 64 it falls back to $8,000. Eligibility covers the whole calendar year in which you reach the age.
Look at the pension row and the TSP row first. Those 2 rows are specific to military retirees, and they are where the usual advice breaks.
The exceptions matter. After separation you can't make new TSP contributions, so a veteran in a contractor job makes catch-ups in the employer 401(k). A veteran in a federal civilian job keeps contributing to the TSP. The catch-up is one per person per year across all plans, so 2 plans don't double it. Since 2022, TSP contributions above $24,500 roll into catch-up automatically for eligible participants. Splitting the shared $24,500 between a TSP and a 401(k) in the same year has its own page.
Then the match. Legacy High-3 retirees such as Ramon never received a TSP match. FERS employees and BRS members get up to 5% of basic pay (1% automatic plus up to 4% matching). A civilian employer match follows that plan's own formula, so read the plan document.
| Common belief | What the rule says | What it means for you |
|---|---|---|
| Catch-up starts on my 50th birthday | Eligible all calendar year you turn 50 | Raise deferrals in January |
| My pension counts toward $150,000 | Only prior-year FICA wages count | Retired pay won't force Roth |
| Higher catch-up lasts past 60 | $11,250 only in years turning 60-63 | Back to $8,000 at 64 |
| I can keep adding to my TSP | No new contributions after separation | Contractor job: use the 401(k) |
| Two plans mean two catch-ups | One catch-up per person per year | Split it, don't double it |
Step 2: When does your catch-up have to be Roth?
Your catch-up must be Roth when your FICA wages from the employer sponsoring the plan were over $150,000 in the prior year (the 2026 threshold set by the IRS). You get no deduction now, and qualified withdrawals come out tax-free later. Military retired pay and VA compensation aren't FICA wages, so a pension never pushes you over. Read W-2 Box 3 from that employer, not your total household income.
Step 3: Run the numbers from your own W-2
A hypothetical household: Ramon and Keiko, 43 and 41, projected forward 6 years. Ramon is a retired Legacy High-3 Army veteran in a contractor job. At 49, his January W-2 shows $158,000 in Box 3. That's over $150,000, so the catch-up in the year he turns 50 must be Roth.
Before, he contributes $24,500 pre-tax. After, it's $24,500 pre-tax plus $8,000 Roth, for $32,500. Spread over 24 pays, $8,000 ÷ 24 is $333.33 a pay. At an assumed 22% bracket, the tax cost of that Roth $8,000 is $8,000 × 0.22 = $1,760.
Over 14 years the catch-ups add up. Ages 50 to 59 are 10 × $8,000 = $80,000. Ages 60 to 63 are 4 × $11,250 = $45,000. Total catch-up: $125,000. Contributions from 50 to 63 rise from 14 × $24,500 = $343,000 to $468,000, at current limits with no growth. Limits are indexed, so the real amounts will change. And all investing carries risk, so the balance could end up lower than what you put in.
The trade-off is plain. A Roth catch-up costs tax now for tax-free money later, and that money sits beside a taxable pension. A traditional catch-up, when allowed, lowers tax now but adds to the required distributions that start at 73 (or 75 for people born in 1960 or later). If your pension already fills the lower brackets, Roth money is more useful later.
Skip catch-ups if you lack 3 to 6 months of cash or carry high-rate debt. Ramon and Keiko have never owned a home, and they may reasonably put a down payment ahead of catch-ups at 50. Before Savant Wealth Management suggests a payroll change, it estimates that tax cost with you.
Your sequence: (1) In January, read last year's W-2 Box 3. (2) Confirm the age you reach this calendar year. (3) Decide the Roth or traditional split, or confirm Roth is required. (4) Change the per-pay amount in payroll. (5) Check the first pay stub after the change. (6) Recheck in October whether you're on pace.
- Last year's W-2 Box 3
- Age reached this calendar year
- One catch-up across all plans
- Pay stub showing the Roth line
- Years 60 to 63 marked on a calendar
- Cash reserve covered first
Step 4: Start in January, not on your birthday
Waiting for the birthday is a timing mistake that burns the room. Say you turn 50 in November and start then. You have only 2 semi-monthly pays left, and $8,000 at a $333.33 pace reaches about $667. Most of that year's $8,000 is lost for good, because unused catch-up room doesn't carry forward. The same slip at 60 wastes the higher year: $11,250 of room shrinks to roughly $937. Set the new amount in January, and lower it later if cash gets tight.
Common questions on TSP catch-up contributions
My contractor 401(k) has a match. Can I still make catch-up contributions to my old TSP after I separate?
No. Once you separate from service you can't make new contributions to your TSP, so catch-ups go into the contractor 401(k) instead. Your old TSP balance stays invested and keeps growing. The 401(k) match is a separate benefit, and it follows that plan's formula. Check the plan document for how it treats catch-up dollars.
What happens if my catch-up goes in pre-tax when it should have been Roth?
The plan or the IRS can require a correction. Typically the plan treats the amount as a mistake and moves it to Roth, or returns it to you, and you may owe tax on a return. Ask your payroll or plan administrator quickly, because fixing an error early is simpler than fixing it after year-end.
How much can I put into my 401(k) in the year I turn 61, counting the catch-up?
For tax year 2026 the IRS limit in the year you turn 61 is $35,750: the $24,500 employee deferral limit plus the $11,250 catch-up for ages 60 to 63. Employer match does not count toward that figure, but the $72,000 total defined contribution limit still applies to employee and employer money together.
Does the bigger catch-up still apply in the calendar year I turn 64?
No. The $11,250 catch-up applies only in the calendar years you turn 60, 61, 62 or 63. In the year you turn 64 the catch-up drops back to $8,000, for a $32,500 total at 2026 limits. Mark that change on your calendar so your payroll amount doesn't overshoot.
Where Savant Wealth Management fits in your catch-up years
Savant Wealth Management advisors put each catch-up year on your list of due dates, starting with the January W-2 check, and show the tax cost of the Roth or traditional choice before you change payroll. Clients meet by screen-share or phone, wherever they live or deploy from. Send a note through the request form if you'd like to walk through your own W-2 numbers, with no promises about outcomes.
Primary sources
This content is general information and education. It is not individualized investment advice, tax advice or legal guidance. Investing involves risk, including the possible loss of principal. Before making financial decisions, talk to a professional who understands your full situation.