TSP vs. ROTH IRA

[uscfanhawaii]

Question for 2011:


For those under 49 of age, If they contributed 16K into TSP for 2011 . Can they also contribute into a ROTH IRA for 2011 (obviously not with TSP) before April 15, 2012? If so, what would be the max one can contribute into the ROTH IRA for 2011?

Whether or not you are over or under 50, I believe the rules are totally separate for 401Ks (like TSP) and IRAs. IRAs are limited based on income, TSP is not. And yes, you can do both. Double check with your tax advisor (or someone else on these boards will likely chime in!), but I think the IRA rules are 6K max per year (might be 5K for under 50). One year, I maxed out my TSP AND IRA contributions for both me and my wife. that REALLY reduced my taxes that year! AND, it gave me some real increases in my daughters' college financial aid!!!

 

[Buster]

Didn't know where to put this and didn't want to start a new thread...

So...

Went to my CPA yesterday for the yearly tax filing..This in itself has always had me wondering ..'WHY?"..Why don't the deductions taken from our bi-weekly or monthly income be enough to cover what we should owe based on what we make and not have to file these g.d. taxes every April..this in itself could save a ton of Government money with all this paper work every spring the IRS has to go through..Flat tax baby is the way to go IMO..

Anyway..in spite of all I made this past year, I still get a State and Federal refund..Not bragging, just saying..if they would have taken the right amount then they wouldn't owe and/or I wouldn't owe...period...and we wouldn't have to file every spring...

Also, just an FYI to the retirees..your medical monthly contributions to your FEHBP is also tax deductable..With those and my other out of pocket medical expenses, I got an additional $800.00 deduction.


Lastly;..I mentioned way back that I rolled my TSP into a conventional medium risk IRA..this past quarter my account was building at a rate of 9.3%..and I didn't lift a finger..