The Thrift Savings Plan annual addition limit Published April 22, 2008 By DFAS Military Pay Newletter DFAS -- Service members who participate in the Thrift Savings Plan may be subject to the annual addition limit, which sets the most a member can contribute from tax-exempt pay earned in a combat zone. The annual addition limit includes: * Total contributions (both tax-deferred and tax-exempt) to the member's military TSP account, as well as the member's civilian TSP account if the member is also a civilian federal employee during the year. * Civilian automatic (1 percent) TSP contributions for the year. * Any matching contributions to civilian or military TSP accounts for the year. * The annual addition limit does not include over-50 catch-up contributions. The annual addition limit for 2008 is $46,000 (an increase from the 2007 $45,000 level), or 100 percent of compensation, whichever is less. Note: For officers, tax-exempt contributions are those made from earnings in a combat zone up to the amount of the highest enlisted member's pay in the service, plus Imminent Danger/Hostile Fire pay if they are receiving it. If the monthly TSP contribution made while in a combat zone is higher than the tax-exempt pay limit, the amount above the limit will be tax-deferred. For more information on TSP, go to www.tsp.gov .