There’s good news for federal employees looking to save more for their retirement.
The IRS announced yesterday that it is increasing the contribution limit for employees who participate in retirement plans including the Thrift Savings Plan (TSP). For the 2019 tax year, the contribution limit will increase from $18,500 to $19,000.
The catch-up contribution limit for employees 50 and over who participate in the TSP remains unchanged at $6,000.
This cost of living adjustment also applies to 401(k), 403(b), and most 457 plans.
In other TSP news, participants will soon see tighter security measures when accessing their online accounts. The Federal Retirement Thrift Investment Board, which administers the TSP, announced it is implementing two-factor authentication by the end of the next fiscal year.
Two-factor verification requires a user to enter both a password and a special code generated by a device of an authorized user. As a result, even if a hacker gets a federal employee’s password, they would need to steal the employee’s device to access their account.
This increased security is part of the federal government’s efforts to boost the security of its websites and databases, which continue to face cyberthreats, according to government audits.