TSP, 401(k), 457, HSA & Roth Options: The Complete Federal Employee Savings Guide 2026
TSP, 401(k), 457, HSA &
Roth Options
Federal Employee Playbook 2026
Federal employees have access to more tax-advantaged savings vehicles than almost any worker in America — and Roth options now exist across nearly every account type. Here is how to stack them all legally, efficiently, and powerfully with the correct 2026 limits.
In 2026, federal employees can contribute $24,500 to TSP ($35,750 at ages 60–63 with super catch-up), $7,000 to a Roth or Traditional IRA, and $4,300–$8,550 to an HSA. Roth options now exist for every major account — Roth TSP, Roth IRA, Roth 457(b), and Roth 403(b). A federal employee ages 60–63 with family HDHP coverage can shelter over $53,300/year in tax-advantaged accounts — creating tax-free and tax-deferred income streams that dramatically reduce lifetime taxes.
| Account | 2026 Standard Limit | Catch-Up (50+) | Super Catch-Up (60–63) | Roth Option? | Employer Match? | RMD? |
|---|---|---|---|---|---|---|
| TSP — Traditional | $24,500 | +$7,500 → $32,000 | +$11,250 → $35,750 | See Roth TSP | Up to 5% salary | Yes — age 73 |
| TSP — Roth ✦ ROTH | $24,500 (combined w/ trad.) | Same combined limit | Same combined limit | ✅ Yes | Match goes to Roth (2026 option) | ❌ Never (SECURE 2.0) |
| Traditional IRA | $7,000 | +$1,000 → $8,000 | $8,000 (no super catch-up) | See Roth IRA | None | Yes — age 73 |
| Roth IRA ✦ ROTH | $7,000 (income limits) | +$1,000 → $8,000 | $8,000 | ✅ Yes — it is Roth | None | ❌ Never |
| HSA — Self-Only HDHP | $4,300 | +$1,000 (age 55+) → $5,300 | $5,300 (no super catch-up) | ✅ Triple-tax-free | Some agencies contribute | ❌ Never (healthcare) |
| HSA — Family HDHP | $8,550 | +$1,000 (age 55+) → $9,550 | $9,550 | ✅ Triple-tax-free | Agency may contribute | ❌ Never (healthcare) |
| 457(b) — Traditional | $24,500 | +$7,500 → $32,000 OR double limit near retirement | +$11,250 → $35,750 | See Roth 457b | Varies by employer | Yes — age 73 |
| Roth 457(b) ✦ ROTH | $24,500 (combined) | Same combined limit | Same combined limit | ✅ Yes — no income limit! | Varies by employer | ❌ Never |
| 403(b) — Traditional | $24,500 | +$7,500 → $32,000 | +$11,250 → $35,750 | See Roth 403b | Varies | Yes — age 73 |
| Roth 403(b) ✦ ROTH | $24,500 (combined) | Same combined limit | Same combined limit | ✅ Yes | Varies | ❌ Never (SECURE 2.0) |
| Backdoor Roth IRA ✦ ROTH | $7,000 (no income limit via conversion) | +$1,000 → $8,000 | $8,000 | ✅ Workaround for high earners | None | ❌ Never |
In 2026, Roth contributions are available in TSP, IRA, 457(b), and 403(b). The strategic question is no longer whether to use Roth — it is how much of each account type to allocate to Roth vs. traditional based on your current vs. projected retirement tax bracket. The HSA already functions as triple-tax-free — better than Roth in most respects. High earners above Roth IRA income limits can still access Roth via Backdoor or in-plan conversion.
Choose Traditional (pre-tax): When your current tax bracket is higher than your expected retirement bracket. Reduces taxable income today. Best for high-earning peak-career years. Choose Roth (after-tax): When you expect to be in the same or higher bracket in retirement — or when you want tax-free inheritance for heirs. Best for early career, low-income bridge years, and ages 60–63 conversion window. Most federal employees benefit from BOTH — traditional TSP during high-earning years, Roth conversions during the pre-SS bridge period.
Regardless of whether you contribute to traditional or Roth TSP, you invest in the same underlying funds. The fund allocation decision is separate from the traditional vs. Roth decision.
| Fund | What It Holds | 10-Yr Avg Return | Risk | Applies to Roth TSP? |
|---|---|---|---|---|
| G Fund | Short-term U.S. Treasuries | ~2.5% | None | ✅ Yes |
| F Fund | Bond index | ~3.5% | Very Low | ✅ Yes |
| C Fund | S&P 500 large-cap | ~13.2% | Moderate | ✅ Yes |
| S Fund | Small/mid-cap U.S. stocks | ~11.8% | Moderate-High | ✅ Yes |
| I Fund | International stocks | ~8.4% | Moderate-High | ✅ Yes |
| L Funds | Auto-mix by target date | Varies | Auto-managed | ✅ Yes |
Because Roth TSP withdrawals are completely tax-free, you want your highest-growth assets in Roth accounts. Allocate your Roth TSP contributions to the C Fund and S Fund — the higher-growth equity funds — and keep more conservative G Fund/F Fund holdings in your traditional TSP. This "asset location" strategy maximizes tax-free wealth accumulation in your Roth account over time.
Why is the TSP limit $24,500 and not $23,500 in 2026?
Can I split contributions between traditional and Roth TSP?
What happens to my Roth TSP if I transfer to a Roth IRA at retirement?
Does the Roth 457(b) really have no income limits?
What is the best order to contribute to accounts as a federal employee?
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