The Thrift Savings Plan's annual contribution limit will remain at $10,000 in 1999.
The IRS sets each year's annual contribution limit, known as the elective deferral limit, to account for cost-of-living increases. In 1998 the contribution limit rose to $10,000, up from $9,500 in 1997.
Most federal employees are not affected by the elective deferral limit because contributions are limited to 10 percent of basic pay each pay period for Federal Employees Retirement System (FERS) employees. Civil Service Retirement System (CSRS) employees can contribute up to five percent of basic pay each period. The $10,000 limit only affects FERS employees who make more than $100,000 a year.
Rep. Connie Morella, R-Md., has sponsored a bill for several years that would allow all employees to contribute up to the $10,000 elective deferral limit. The bill, which Morella says would encourage federal employees to save up for retirement, passed the House Government Reform and Oversight Committee in July, but never made it to the House floor for a vote.