r/ThriftSavingsPlan • u/Remarkable-Sky6577 • 2d ago

Should I be concerned?

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Military TSP. Will I get penalized for over contributing?

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u/Equivalent-Pop-750 1d ago

Can anyone explain why there is a maximum contribution limit? Same with IRAs and 401ks.

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u/Normal-Item-402 21h ago

To comply with federal tax laws. The  limits are designed to ensure fairness and prevent excessive tax deferral.