Strategies to Increase TSP Contributions

Strategies to Increase TSP Contributions
By Aaron Oya
USPS Headquarters Labor Relations

In my past few articles, I’ve focused on IRS elective contribution limits and increases for 2026. The millionaires interviewed for this series are hyper-aware of those limits every single year. You might assume they began their careers contributing the maximum, but that isn’t exactly true; well, sort of.

If you recall, our millionaires contributed the maximum early in their careers. But, back then, the maximum was percentage-based. Employees were originally limited to contributing 10% of pay, with that cap increasing by 1% per year until it reached 15% in 2005.

That same year, the IRS shifted from percentage-based limits to a dollar-based, elective deferral maximum — starting at $15,000 and increasing annually. And remember, pay scales were significantly lower at the turn of the century, so hitting those new dollar-based maximums was not always feasible early on.

So, what did they do? What can the rest of us do? The answer is simple:

Start and plan.

For years, there was one milestone to be aware of when working toward maximum contributions: the year you turn 50. That’s when catch-up contributions allow you to invest beyond the IRS elective contribution limit — an additional $8,000 in 2026.

Ideally, you want to work your way up to the under-50 maximum before age 50, then gradually build toward the catch-up maximum. With implementation of the SECURE 2.0 Act in 2025, TSP investors ages 60-63 now qualify for a “super catch-up” contribution of $11,250. This creates a new planning window — and a powerful opportunity — for those approaching retirement.

There are several strategies that can help you move toward the maximum. If you invest by percentage, increase your contribution rate when your pay increases. Annual raises, promotions or higher-level details all create natural opportunities to bump up your TSP without feeling the impact.

If you invest by dollar amount, determine how much you can increase each pay period and adjust on a schedule similar to percentage-based contributors. And regardless of which method you use, it’s essential to know your dollar contributions per pay period.

Recently, I spoke with a peer who felt overwhelmed by the idea of working toward the $24,500 under-50 maximum. They were contributing by percentage and never had translated that percentage into actual dollar contributions per pay period. Once they checked, they realized they already were much closer to the maximum than they thought. Suddenly, the goal felt achievable – because it was.

Reaching the TSP maximum isn’t about perfection or starting your career at the top. It’s about steady progress, informed decisions and understanding the milestones that matter. Whether you’re early in your career, approaching 50 or eyeing the new “super catch-up” window, the path forward is the same: Start where you are, increase when you can and stay aware of the increasing limits that shape your long-term retirement success.

Every NAPS member has the potential to build a strong retirement — one adjustment, one raise, one contribution increase at a time. The TSP millionaires didn’t get there overnight; neither will you. But, with a plan, awareness and consistent action, you’ll be surprised how quickly “intimidating” goals become realistic achievements.

If you have reached significant TSP milestones yourself and would be willing to share your experience, I’d love to hear your story.