Roth IRA and Thrift Savings Plan question?
I have a Roth IRA and i’ve contributed the max of $5000 for both years 2010 and 2011. Now i also contribute 20% of my paychecks into the government Thrift savings plan. With i go over the max of 5000 this years since im contributing into the TSP as well? Or is it even considered in the same group of investments?
If it is what are the penalites for contributing more than $5000 a year.
thanks any links or information will help
Matt
Most of these plans allow you to sign up for them independently. You can have a 401k AND an IRA. Look at the conditions of the TSP. I bet that they do not mention another pension plan, IRA, or 401k exclusion.
Soccerref
a11osdf
You will be okay.
Max out 5k for IRA (Roth, traditional) if you are 50 or under. Just IRS rules. If you are 50 or over, 1k extra.
About the TSP , the max you could put in is 16500 in 2011. If you over 50, add 5000 to it.
So total should be 21500 MAX for IRA and TSP.
Do not contribute over 5k in your IRA. The reason is the IRS gives everyone working in the workforce having the same to save, low income, high income, middle income to save. They don’t want people have high income to use IRA as a massive tax hiding vehicle. They will penalize you for excessive contribution after certain day of the year.
I work for the fed, I contribute to Roth, TSP. Just follow the IRS rule.
You are smart to save 20% of your pay. Your retirement will be coming earlier than most people realized.