Higher Catch-Up Limits to the Thrift Savings Plan (TSP) for
Age 60-63

Reference Number: NFC-24-1726506081
Published: January 2, 2025
Effective: Pay Period 25, 2024

Summary

The Setting Every Community Up for Retirement Enhancement Act of 2022 (Secure 2.0 ), Section 109, increases the limit on catch-up contributions for individuals who have attained ages 60, 61, 62, and 63. Under current law, employees who have attained age 50 are permitted to make catch-up contributions under a retirement plan in excess of the otherwise applicable limits. Section 109 increases these limits to the greater of $10,000 or 1.5 times the regular catch-up amount.

Section 109 is effective for taxable years beginning after December 31, 2024. Employee eligibility is for the calendar year in which the employee turns age 60, 61, 62, and 63. The eligibility stops the calendar year the employee turns age 64.

Note: In Fall 2024, Thrift Savings Plan (TSP) will send a one-time notice to eligible participants turning age 60–63 in calendar year 2025. The employee's date of birth must be accurate in the National Finance Center (NFC) system to ensure eligibility for higher catch-up contribution limits, with no opt-in required.

Affected Systems

System	System Impact
Employee Personal Page (EPP)	Modified the TSP Catch-Up (Federal and non-Federal) page to include an additional statement.
Web-based Special Payroll Processing System (SPPS Web)	Modified to include additional requirements for plan codes and contribution limits.

Implementation

EPP

On the TSP Catch-Up (Federal and non-Federal) page, the following additional statement has been added:

TSP Section 109 of SECURE Act 2.0 (Higher catch-up limit to apply at age 60, 61, 62, and 63) increases the catch-up contribution limit for active participants ages 60, 61, 62, or 63 or turning 60, 61, 62, or 63 in the calendar year will be indexed at 1.5 times of the IRS catch up limit. The employee's date of birth must be accurate in the NFC system to ensure eligibility for higher catch-up contribution limits, with no opt-in required.

SPPS Web

The application has been modified to include the following additional requirements:

• FERS/CSRS 401k Plan Codes 01, 02, 98, and 99.
• NAFI 401k Plan Codes TA, TC, TD, TE, TF, and EE.
• Determine if the employee is age 60, 61, 62, or 63 in the calendar year or will be attaining ages 60, 61, 62, or 63 during the calendar year.
• Indexed the catch-up limit of 1.5 times of the IRS catch up limit.
• Return the catch-up limit to appropriate IRS dollar limit the calendar year the employee turns age 64.

Resources

The EPP Procedure, which is available online on the NFC website, is being updated to include the information in this bulletin. To view this procedure, select HR and Payroll Clients from the MyNFC drop-down menu on the NFC Home page. At the HR and Payroll Clients page, select the Publications tab and select NFC System Documentation from the Publications Library section. Select the applicable procedure manual.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.