How much can I put away in my TSA?

The rule of thumb is that you can save a maximum of 20 percent of your includable compensation (16 2/3 percent of your gross compensation) from your qualified employer, not to exceed $9500 per calendar year, which amount will increase with inflation. The general formula for computing the maximum salary reduction permitted is as follows: where s = annual salary t = total years of service including current year b = prior year's excludable contributions Here is an example of how this formula is applied: Mrs. Educator earns $30,000 this year and has no prior service and no prior TSA contributions. Her maximum salary reduction is $5000.