Roth TSP contributions but over income limit

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caseym
Posts: 4
Joined: Sat Feb 04, 2017 2:09 pm

Roth TSP contributions but over income limit

Post by caseym »

Hi all. I contributed around $2,500 as roth funds during the first quarter of 2021. After speaking with our CPA my wife and I are well over the income limits for roth contributions in 2021. He said I should recharacterize to traditional. Has anybody done this with a TSP? It seems like it is not possible, but am I going to be penalized for that?
sailaway
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Joined: Fri May 12, 2017 1:11 pm

Re: Roth TSP contributions but over income limit

Post by sailaway »

Hire a new CPA, since the Roth TSP, like the 401k, has no income limits.

The Roth IRA is the one with income limits.
02nz
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Joined: Wed Feb 21, 2018 3:17 pm

Re: Roth TSP contributions but over income limit

Post by 02nz »

This is one of the reasons I often point out to people there's no such thing as "a Roth" - there are Roth IRAs, Roth 401k's, etc. And as has already been pointed out, there are no income limits at all for Roth 401k contributions. (Such limits only apply to Roth IRAs. And, you cannot recharacterize 401k or other employer plan contributions, AFAIK.)
pizzy
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Re: Roth TSP contributions but over income limit

Post by pizzy »

He's fired.
Late 30's | 90% VT | 10% Cash
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HueyLD
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Re: Roth TSP contributions but over income limit

Post by HueyLD »

caseym wrote: Fri Jan 14, 2022 11:10 am Hi all. I contributed around $2,500 as roth funds during the first quarter of 2021. After speaking with our CPA my wife and I are well over the income limits for roth contributions in 2021. He said I should recharacterize to traditional. Has anybody done this with a TSP? It seems like it is not possible, but am I going to be penalized for that?
Did you tell your CPA that the $2,500 was put into Roth TSP? You might have said Roth and it is customarily assumed to be a Roth IRA.
TropikThunder
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Joined: Sun Apr 03, 2016 5:41 pm

Re: Roth TSP contributions but over income limit

Post by TropikThunder »

HueyLD wrote: Fri Jan 14, 2022 11:44 am
caseym wrote: Fri Jan 14, 2022 11:10 am Hi all. I contributed around $2,500 as roth funds during the first quarter of 2021. After speaking with our CPA my wife and I are well over the income limits for roth contributions in 2021. He said I should recharacterize to traditional. Has anybody done this with a TSP? It seems like it is not possible, but am I going to be penalized for that?
Did you tell your CPA that the $2,500 was put into Roth TSP? You might have said Roth and it is customarily assumed to be a Roth IRA.
It’s not always the advisor’s fault. :P
Topic Author
caseym
Posts: 4
Joined: Sat Feb 04, 2017 2:09 pm

Re: Roth TSP contributions but over income limit

Post by caseym »

Thanks everybody. It's not the advisor's fault. My wife has a roth IRA with Vanguard, and he mentioned that we are over the income limit for that so we need to recharacterize the funds. But I assumed this was the case for the roth contributions in my TSP as well. But it's good to hear I don't need to worry about that.
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