Home Forums Miscellaneous Topics Stock Market and Investing Roth or traditional 401?

Kenneth, if he’s in tsp then he can put in 23,500 in Roth a year. His matching (up to 5%) will be in traditional. Can’t get the Roth money out till 59.5 without penalty but he will be able to touch the traditional money once he gets retirement eligible but that’s different for different gov employees based of classification. Put it in let it roll. Even a small amount will be something in 25-30 years if invested in one of the higher return funds (c and s funds) if the market average stays where it is over the last several decades

How?

I was in the TSP, both uniformed and as a .GOV CIV and the limits still applied. Most I could contribute was the standard contribution limits for both my ROTH along with the max TSP regular pre-tax.

The TSP admin folks will stop taking contributions once you hit the max contribution limit, happened to me twice.

The employee contribution limit for a 401K is $23,500 if you are less than 50 years old. The maximum contributions to your plan are $69,000 (employee + employer contributions) per year. There would be no reason for the employer to stop taking your contributions unless you exceeded 23,500 for the year.

All of that cannot go into a Roth.

That's what I was getting at..

The limits for ROTH and 401K contributions apply.

The 1st year the TSP starting allowing ROTH contributions (no match) they used the limits for 401K/TSP for both combined and stopped my contributions in OCT as I'd reached the maximum for TSP. After that I just moved my ROTH to Vanguard and maxed it there, for myself and my wife's, and kept maxing the TSP with catch-up. Apparently that 1st year they hadn't set up the capability to maximize both. I also started IRA rollovers to get some additional choices as the TSP options were pretty limited.

Do some updated research and see if you can find that its changed. It’s not just tsp, most employer sponsored retirement accounts offer Roth 401k 403b accounts that have the same contribution limits as a traditional. I have a Roth 401k and have put in more than the Roth IRA limits and no one stopped taking them. Below is from Schwab.com. Maybe I’m wrong, I’ll check with my accountant but they haven’t said anything when I’ve been over the limit. Oh and I’m not 50 so I can’t make catch up contributions yet.

https://www.schwab.com/learn/story/roth-401k-vs-roth-ira

Yup, looks like my info was dated!

Wow, wished I'd had the option while I was still working!

My wife’s employer offers Roth 403b with the same limits. Wish we could max them both out. Would make the retirement years full of good hunts.