Vice President's Report

Hello brothers and sisters.

      My article this month is about the changes in 2025 for our retirement plan. The thing that has not changed is you should contribute as much as you can each check.

2025 Changes to USPS Thrift Savings Plan (TSP) Contributions

      The Thrift Savings Plan (TSP) is a retirement savings plan for federal employees, including those working for the United States Postal Service (USPS). Starting January 1, 2025, there will be several important changes to the TSP contribution limits and catch-up contributions.

Increased Contribution Limits

      The Internal Revenue Service (IRS) has announced an increase in the elective deferral limit for 2025. The new limit is $23,500, up from $23,000 in 2024. This means that federal employees, including USPS employees, can contribute up to $23,500 to their TSP accounts in 2025.

Catch-Up Contributions

      For participants aged 50 and older, the catch-up contribution limit remains at $7,500 for 2025.. Starting in 2025, participants turning 60, 61, 62, or 63 can contribute an additional $11,250. This is a substantial increase from the previous limit and aims to help older employees boost their retirement savings.

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Annual Additions Limit

      The annual additions limit, which includes all contributions to the TSP, has also increased to $70,000 for 2025, up from $69,000 in 2024. This limit applies to the total contributions made across all defined contribution accounts in a calendar year.

What This Means for USPS Employees

      USPS employees should take note of these changes and consider adjusting their contributions to maximize their retirement savings. The new limits provide an opportunity to save more for retirement, especially for those nearing retirement age.

      To make changes to your TSP contributions, USPS employees can call TSP at 877-968-3778. It's important to review your retirement savings plan and consult with a financial advisor if needed to ensure you are making the most of these new limits.

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-- Darryl Clay

Vice President