Traditional or Roth

This topic contains 4 replies, has 3 voices, and was last updated by  Rich W 4 years, 11 months ago.

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  • #11242

    Michael66
    Participant

    I currently invest in the Traditional TSP but I was curios if there were more advantages to the Roth or if you had an opion which is better.

    Thanks

    #11251

    TS Paul
    Keymaster

    That is such a great question I just wound up writing an entire post about it which you can find here:

    Traditional TSP vs. Roth TSP

    The TSP Allocation Guide www.TSPallocation.com

    #11256

    Michael66
    Participant

    That was incredibly helpful, thank you. I am only in my second year of investing and that has really been one of my biggest concerns so far. Again thank you for your time and the great article.

    #12606

    Brad

    Maybe this was covered and I missed it. If I invest in a Roth IRA and Roth TSP can I max out my Roth IRA at $5,500 per year AND make Roth contributions to TSP? I won’t be penalized for making more than $5,500 in Roth contributions for a year, will I?

    I assume I can since the normal TSP contribution limit is much higher, but I want to make sure I’m not violating the contribution rules.

    Thanks for the help.

    -Brad

    #12613

    Rich W

    As long as your income is eligible for contributing $5,500 towards your roth IRA, you can max out both your roth IRA at $5,500 and your roth TSP at $17,500 without any penalties.

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