Roth vs Traditional question...

[hyena]

I've been a little confused about how the Roth vs Traditional option works in our TSP. $19500 is the limit for 2020. So, I can put the entire $19500 in the Traditional TSP, or...If I want to use the Roth option, I can only put $6000 in the Roth portion and then have to put the other $13500 in the Traditional portion? Is that how it works?

Thanks

 

[tom4jean]

I've been a little confused about how the Roth vs Traditional option works in our TSP. $19500 is the limit for 2020. So, I can put the entire $19500 in the Traditional TSP, or...If I want to use the Roth option, I can only put $6000 in the Roth portion and then have to put the other $13500 in the Traditional portion? Is that how it works?

Thanks

No $19,500 is the limit for either traditional or Roth. The $6,500 is if you're over 50 you can add an additional $6,500 for "catch up contribution".
You can split the 19,500 between traditional and Roth anyway you'd like, same with the catch up.

https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/contributionLimits.html

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[hyena]

No $19,500 is the limit for either traditional or Roth. The $6,500 is if you're over 50 you can add an additional $6,500 for "catch up contribution".
You can split the 19,500 between traditional and Roth anyway you'd like, same with the catch up.

https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/contributionLimits.html

Sent from my Pixel 2 XL using Tapatalk

Ok, if you're under 50 and not worrying about the catch up right now, you can put the whole $19500 in the Roth TSP? Also, another question...if you put the $19500 in the Roth TSP, does your 5% match go into the Traditional portion?

And last question, lol, if you are putting $19500 in a TSP Roth, are you still able to put an additional $6000 in an outside Roth account, such as a TD Ameritrade account to trade ETF's?

 

[tom4jean]

Ok, if you're under 50 and not worrying about the catch up right now, you can put the whole $19500 in the Roth TSP? Also, another question...if you put the $19500 in the Roth TSP, does your 5% match go into the Traditional portion?

And last question, lol, if you are putting $19500 in a TSP Roth, are you still able to put an additional $6000 in an outside Roth account, such as a TD Ameritrade account to trade ETF's?

Yes you can put the whole amount in the Roth, But the matching that the government puts in goes into traditional. Sorry I don't know about outside accounts.

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