RothTSP question

[SteelSaving]

So a Roth IRA has the $0-$10,000 rule for married filing separately.
Is there a similar rule for the Roth TSP?

My google-fu is failing me and all I'm getting answers on is the RothIRA rule.

 

[tsptalk]

I hope this helps...

Elective Deferral Limit (Internal Revenue Code (IRC) Section 402(g))

The IRC § 402(g) elective deferral limit for 2021 is $19,500. This limit applies to the traditional (tax-deferred) and Roth contributions made by an employee during the calendar year. The combined total of traditional (tax-deferred) and Roth contributions made during the calendar year cannot exceed the elective deferral limit. The elective deferral limit does not apply to Agency/Service Automatic (1%) Contributions, Agency/Service Matching Contributions, catch-up contributions, traditional contributions made from tax-exempt pay, or amounts transferred or rolled over into the TSP.

https://www.tsp.gov/bulletins/20-8/

 

[SteelSaving]

Thanks! I avoided the roth option because I thought my income was too high to make it worth it (I plan to live frugally in retirement). But am getting close to hitting the max and thought it would be a good idea to have the option to pull out some tax free money if needed. I decided to throw some into the roth but then freaked out about any additional rules it might have.

 

[Bullitt]

Roth TSP you must have minimum 5 years invested before withdraw and is subject to RMD at age 70 1/2.

 

[SteelSaving]

That's fine, I'm in my mid-30s and already hitting 15% of my salary to regular TSP.
This will just be a little fund to grow tax free with whatever I need to get to my yearly max.

 

[cookiehoo]

Hi This not a reply, but questions. For the Roth, I heard and read that when a person retires and starts withdrawing from TSP it comes out equally from both and you have no control? I'm I correct?

Also I do not see 2 separate breakdowns for the balances for what the Roth or traditional TSP. Is there somewhere on the site that provides this information?

One more thing. Assuming you can roll over the TSP Roth portion to a regular Roth IRA established outside after retirement?

Thanks for any help.

 

[Bullitt]

1. That rule changed in 2019. You do not have to withdraw an even equal amount from both accounts anymore, but keep in mind Roth TSP has required minimum distributions at age 70 1/2.

If you have both traditional and Roth money in your account, you can specify that your withdrawal should come only from your traditional money or only from your Roth money. This is optional. If you don’t specify, then your withdrawal will be made from both types “pro rata,” meaning it will have the same percentages of Roth and traditional as are in your account.

https://www.tsp.gov/publications/tspbk02.pdf

2. Not sure, I do not have a Roth TSP, but the TSP is archaic compared to any mutual fund or trading platform.

3. Yes you can roll your Roth TSP into a Roth IRA, but your 5 year clock will reset.