Dual Contributions to the Roth TSP and Roth IRA

[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.

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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]