Had 401k, put 7k in, now have Roth TSP, how much can I add?

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jastevenson
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Joined: Mon Nov 26, 2012 11:32 pm

Had 401k, put 7k in, now have Roth TSP, how much can I add?

Post by jastevenson »

Hi all,

I know that if I contribute $17,000 to a 401k, I can also contribute $5,000 to a Roth IRA.

But what about a 401k and a Roth TSP?

I had a 401k at my old job earlier this year, and contributed $7,000 (PRE-tax dollars) since January 2012.

Switched jobs and now have a Roth TSP (limit is $17,000).

How much can I contribute to my Roth TSP (given my 401k contribution earlier this year?)

Any help would be much appreciated--I've searched high and low but no luck finding an answer. Thank you!

:sharebeer
Johm221122
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Joined: Fri May 13, 2011 6:27 pm

Re: Had 401k, put 7k in, now have Roth TSP, how much can I a

Post by Johm221122 »

Are you sure you want a Roth and not a regular TSP?the limit is for both combined
John
Default User BR
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Re: Had 401k, put 7k in, now have Roth TSP, how much can I a

Post by Default User BR »

Roth IRAs have no bearing on qualified plans like TSP. Your total of employee deferrals and designated Roth to all defined contribution plans is 17k. You can put 10k into either tax-deferred or Roth TSP, or a combination. As noted, which is better depends on circumstances.

You can also contribute to a Roth IRA, if under the MAGI limit.


Brian
Alan S.
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Re: Had 401k, put 7k in, now have Roth TSP, how much can I a

Post by Alan S. »

Agree. While the TSP is technically not a 401k, for all practical purposes including contribution limits, just consider it the same as a 401k plan.

Since you have been contributing to a Roth IRA, you apparently don't need the TSP Roth option to make Roth contributions, although the TSP option expands your total Roth contribution potential. DId the former employer not offer a Roth option or did something else change to trigger your decision to use the remaining 10k for Roth instead of pre tax deferrals?
Topic Author
jastevenson
Posts: 151
Joined: Mon Nov 26, 2012 11:32 pm

Re: Had 401k, put 7k in, now have Roth TSP, how much can I a

Post by jastevenson »

Thanks for the replies thus far, folks!

To answer your question: my former employer only offered 401k as an option, so I had no choice but to go with it.

My new employer offers the TSP and Roth TSP. What makes matters complex is that they actually will match 5% of my salary, but they force you to put 1 of those 5% in a traditional TSP (the remaining 4% match can go in a Roth TSP).

So basically, in one year, I'll have contributed to a regular TSP, Roth TSP, Roth IRA, and 401k!

I guess the plan is to to make sure that (regular TSP + Roth TSP + 401k money is < $17,000), and then I'll add 5K for my separate, non-employer-related Roth IRA, making it $22,000 in savings for the year.

Alan S. wrote:Agree. While the TSP is technically not a 401k, for all practical purposes including contribution limits, just consider it the same as a 401k plan.

Since you have been contributing to a Roth IRA, you apparently don't need the TSP Roth option to make Roth contributions, although the TSP option expands your total Roth contribution potential. DId the former employer not offer a Roth option or did something else change to trigger your decision to use the remaining 10k for Roth instead of pre tax deferrals?
Default User BR
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Joined: Mon Dec 17, 2007 6:32 pm

Re: Had 401k, put 7k in, now have Roth TSP, how much can I a

Post by Default User BR »

jastevenson wrote:My new employer offers the TSP and Roth TSP. What makes matters complex is that they actually will match 5% of my salary, but they force you to put 1 of those 5% in a traditional TSP (the remaining 4% match can go in a Roth TSP).
That doesn't sound right. I believe all matching has to go into tax-deferred:

https://www.tsp.gov/planparticipation/e ... ions.shtml


Brian
rogue409
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Joined: Mon Jan 28, 2008 10:19 pm

Re: Had 401k, put 7k in, now have Roth TSP, how much can I a

Post by rogue409 »

Default User BR wrote:
jastevenson wrote:My new employer offers the TSP and Roth TSP. What makes matters complex is that they actually will match 5% of my salary, but they force you to put 1 of those 5% in a traditional TSP (the remaining 4% match can go in a Roth TSP).
That doesn't sound right. I believe all matching has to go into tax-deferred:

https://www.tsp.gov/planparticipation/e ... ions.shtml


Brian
"If you are FERS, your Agency Matching Contributions are based on the total amount of money (traditional and Roth) that you contribute each pay period. All agency contributions are deposited into your traditional balance."
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