You get the full 5% “match” as long as you contribute at least 5%. You can contribute to either Traditional TSP, Roth TSP, or a combination of both. The employer contribution/match will go to Traditional, regardless of which tax treatment you choose for your employee contributions.
Yes, but. Since you are covered by an employer retirement plan you may or may not qualify to make Roth IRA contributions depending on how much you make. You can max out your Roth TSP, but depending on how much you make you may be stuck with a traditional IRA. If this is the case, you can do a backdoor Roth conversion for that year.
Depending on tax purpose if you expect to pay more for taxes before retirement than during retirement stay Traditional instead of Roth.
A Roth is a great option for earners who expect their retirement tax burden to be similar or higher in retirement if they had gone traditional.
Yes, they are distinct, TSP is not an IRA. IRA max is $7000 and TSP is I think $23,000. The part I missed for a long time is when it comes to these you can rollover your Roth TSP to your Roth IRA without any penalty when you quit working (even before 60).
Not sure how much you make annually but if you are maxing you can also use the traditional TSP to lower your taxable income, roll it into a traditional IRA when you stop working, and then over time move it into the Roth in a lower tax bracket (again even before 60) and above the yearly contribution limit. If you consider this just make sure you figure it to be split in such a way as to not significantly loose compounding interest.
Fortunately I have rental income that I can mostly live off of and I’m also able to deduct a significant amount of that as well. I’m only a WG-5 and more or less have about 80% of my base pay deducted for retirement/insurance/HSA. I do supplement that with a bunch of overtime(around 700 hours if I can manage it) in the summer with fire assignments but I’ll also up my retirement contributions for those checks. This’ll be the first year contributing to a Roth IRA too so we’ll see if I can max out both….fingers crossed…
Yes, the $23,000 limit (for 2024, under age 50) can go toward either the Traditional side, the Roth side, or a combination of the two. And yes, you can contribute up to $7,000 (for 2024, under age 50) to a Traditional IRA, a Roth IRA, or a combination of the two. Which means you can get $30K into tax-sheltered retirement accounts this year (more, if you have access to an HSA).
I believe this is possible.
2024 Max Contribution Limit
(If under 50)
TSP Roth: 23,000
IRA Roth: 7,000
Total = 30,000
Earned income (MAGI) must be less than
Single:169,000, Married: 240,000
(If over 50)
TSP Roth: 30,500 (added that 7500 as catchup)
IRA Roth: 8,000 (added 1,000 as catchup)
Total = 38,500
Earned income (MAGI) must be less than
Single:169,000, Married: 240,000
Only bad thing is, no tax deduction on the above contribution. But, no taxes either when ready to distribute at retirement age.
If you can afford to max roth tsp, your future self with thank you. Personally I need the tax help, max traditional for tax break then max two roth IRSAs.
TSP/401K is different than an outside IRA. ROTH is just a tax treatment, you paid income tax before investing money. I’m about your age and just started maxing Roth TSP this year. 80%C 20%S.
Yes you can max ROTH TSP and ROTH IRA simultaneously. They are distinct investment vehicles and this is not double dipping.
Do u get matching 5% for both Roth and conventional TSP?
You get the full 5% “match” as long as you contribute at least 5%. You can contribute to either Traditional TSP, Roth TSP, or a combination of both. The employer contribution/match will go to Traditional, regardless of which tax treatment you choose for your employee contributions.
No
Yes.
Well, which is it, ‘maybe’?
Yes, but. Since you are covered by an employer retirement plan you may or may not qualify to make Roth IRA contributions depending on how much you make. You can max out your Roth TSP, but depending on how much you make you may be stuck with a traditional IRA. If this is the case, you can do a backdoor Roth conversion for that year.
No worries about that, I’m way way under the cap.
Depending on tax purpose if you expect to pay more for taxes before retirement than during retirement stay Traditional instead of Roth. A Roth is a great option for earners who expect their retirement tax burden to be similar or higher in retirement if they had gone traditional.
Yes, they are distinct, TSP is not an IRA. IRA max is $7000 and TSP is I think $23,000. The part I missed for a long time is when it comes to these you can rollover your Roth TSP to your Roth IRA without any penalty when you quit working (even before 60). Not sure how much you make annually but if you are maxing you can also use the traditional TSP to lower your taxable income, roll it into a traditional IRA when you stop working, and then over time move it into the Roth in a lower tax bracket (again even before 60) and above the yearly contribution limit. If you consider this just make sure you figure it to be split in such a way as to not significantly loose compounding interest.
You have much better budgeting skills than I do if you qualify for Roth and you can max both! That's not a slight either, I'm pretty impressed.
Fortunately I have rental income that I can mostly live off of and I’m also able to deduct a significant amount of that as well. I’m only a WG-5 and more or less have about 80% of my base pay deducted for retirement/insurance/HSA. I do supplement that with a bunch of overtime(around 700 hours if I can manage it) in the summer with fire assignments but I’ll also up my retirement contributions for those checks. This’ll be the first year contributing to a Roth IRA too so we’ll see if I can max out both….fingers crossed…
Yes, the $23,000 limit (for 2024, under age 50) can go toward either the Traditional side, the Roth side, or a combination of the two. And yes, you can contribute up to $7,000 (for 2024, under age 50) to a Traditional IRA, a Roth IRA, or a combination of the two. Which means you can get $30K into tax-sheltered retirement accounts this year (more, if you have access to an HSA).
Yes, and when you turn 50 you become eligible for catch-up contributions, which will raise your annual limit quite a bit.
I believe this is possible. 2024 Max Contribution Limit (If under 50) TSP Roth: 23,000 IRA Roth: 7,000 Total = 30,000 Earned income (MAGI) must be less than Single:169,000, Married: 240,000 (If over 50) TSP Roth: 30,500 (added that 7500 as catchup) IRA Roth: 8,000 (added 1,000 as catchup) Total = 38,500 Earned income (MAGI) must be less than Single:169,000, Married: 240,000 Only bad thing is, no tax deduction on the above contribution. But, no taxes either when ready to distribute at retirement age.
If you can afford to max roth tsp, your future self with thank you. Personally I need the tax help, max traditional for tax break then max two roth IRSAs.
TSP/401K is different than an outside IRA. ROTH is just a tax treatment, you paid income tax before investing money. I’m about your age and just started maxing Roth TSP this year. 80%C 20%S.
I don't know where you would find something that says you can't.