Dual Contributions to the Roth TSP and Roth IRA

June 7, 2019

[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]What if both you and your spouse have maxed out your Roth IRAs? Let’s say that happened and then also say you’re looking to make a sizable contribution to your TSP now. Did you know that you could save a little extra money on taxes by designating that as a Roth option also?

Here’s the rundown:

As of 2019, the IRS has limited the amount you can contribute to the TSP at 19,000 dollars, and the Roth IRA at 6000 dollars, meaning you can contribute up to a maximum of $25,000 between the two.

If you could swing it, you should get as close to that maximum amount as you can, as not only will it generate a higher return for your retirement, but it will also save you money on taxes because the money you invested will be inside of Roths.

Refer to the 2019 annual contribution limits guidelines to see how much the yearly limit is for your particular eligibility when contributing to your Roth IRA. If you make a lot of money and want to put more into the fund, an option you might want to look into is a ‘backdoor Roth conversion.’

Before you make any move, you should refer to a financial advisor to help you figure out the clearest plan of attack for you and your future and to help you get a better handle on the types of investments into which you’ll be putting your money.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36756″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]