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To receive the maximum Agency or Service Matching Contributions, you must contribute 5% of your basic pay each pay period.
Your agency or service will be notified that you have requested to have your excess deferrals and associated earnings returned to you. Your agency or service is then required to remove the Agency/Service Matching Contributions associated with these excess deferrals.
Agency/Service matching contributions The first 3% is matched dollar-for-dollar by your agency or service; the next 2% is matched at 50 cents on the dollar. This means that when you contribute 5% of your basic pay, your agency or service contributes an amount equal to 4% of your basic pay to your TSP account.
All matching contributions go to your traditional TSP, not your Roth even if you contribute solely to your Roth account. In other words, a Roth TSP cannot receive matching funds, but any matching dollars you receive will go into your traditional account.
The IRC 402(g) elective deferral limit for 2020 is $19,500. This limit applies to the traditional (tax-deferred) and Roth contributions made by a service member during the calendar year.
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The elective deferral limit does not apply to Agency/Service Automatic (1%) Contributions, Agency/Service Matching Contributions, catch-up contributions, traditional contributions made from tax-exempt pay, or amounts transferred or rolled over into the TSP.
Required minimum distribution (RMD) changes SECURE 2.0 increases the age you must begin taking RMDs from your TSP account. The start age for RMDs increased from 72 to 73 starting on January 1, 2023. The start age will further increase to 75 on January 1, 2033.
Government match The Department of Defense will contribute 1 percent of your basic pay to your Thrift Savings Plan after 60 days of entering service and will begin to match your contributions (up to an additional 4 percent when you contribute at least 5 percent), at the start of your third year of service.

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