Question - TSP contribution deployment

[tbsk]

I am trying to figure out how much I can contribute to TSP during deployment. I will be deployed from the end of this year through Feb of next year. So, can I contribute 49,500 for the year 2009 and another 49,500 for the year 2010? If so, do I have to still be deployed to contribute that much or do I have the entire year of 2010 to put that money in?

Thanks for the help
tbsk

 

[Show-me]

Welcome to the messabe board! I don't know the answer to this one. Anybody out there have this experience?

 

[James48843]

it's 49K, not 49.5K.

It only is available WHILE you are overseas deployed. Its a IRS 415(c) section that only applies to money earned while inside the deployed combat location.

http://tsp.gov/bulletins/09-u-11.pdf

It is 49K each tax year. So yes- you could do 49K this year (if you got it,) and 49K next year, but only if it's money you earn while deployed.

Good luck.

 

[Show-me]

Thank you James, I just knew you would have the answer quickly.

 

[tbsk]

Thanks for the help - appreciate the quick response.

 

[Birchtree]

Try and hold a little back for those bootleged DVDs and camel milk treats. If you are a good rummey player you can make some change that way.

 

[tbsk]

Few more questions after looking through some tax stuff. Appreciate your time in responding.

1) Assuming you weren't deployed, if the elective deferral limit for tax year 2009 is 16,500. And you put 5,000 in an IRA. . . you can only put 11,500 in the TSP, correct?

2) As above, during deployment, if the elective deferral limit goes to 49,000 . . . .you can put 44,000 into TSP after the ira?

3) Since I will be deployed through Feb of next year, do I get the full 16,500 deferral limit for the rest of the year since Jan and Feb should fall under the 49,000 limit?

Appreciate your help.

Birchtree - I am already annoyed at the arabic subtitles on the screen and the camcorder shaking! I havent seen the camel milk treats, but will start asking around!

 

[Birchtree]

Both the TSP and IRA are separate and can be funded to their limits. The TSP is employer related and the IRA is another mechanism for saving. Go with a Roth IRA and try to pick individual stocks that pay dividends - the dividends will be reinvested every three months free of charge - another way of dollar cost averaging. Your TSP selections look great. When my daughter was in Iraq she had her weightings at 75C and 25I. By the way, she found love in Iraq - so the tour is wide open.

 

[Callme_CO]

As birch has state TSP is a 401k for federal and military personnel. You can max out the Tsp and then max out a roth ira. I suggest the Roth about and beyond for the simple aspect that Roth traditionally tax's before hand and let it grow tax free. Being in a tax exempt theater of operations you will not be taxed on either end of it. To me that's what to start off with.