Q. I will become a 49-year-old federal employee this August. I currently contribute the Internal Revenue Service maximum of $17,000 annually to the Thrift Savings Program via bi-weekly payroll deductions. I plan to begin making catch-up contributions Jan. 1, 2013. Once the Roth TSP is available, can I designate beginning Jan. 1, 2013 catch-up contributions to the Roth TSP while maintaining the IRS maximum contributions to the Traditional TSP?
A. You may split your pay deferral, including your catch-up contributions, between the traditional and the Roth TSP accounts.
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Let all your readers know, DO NOT roll your TSP over to any other vehicle. Otherwise you will jump through hoops to get your money penalty free from an IRA.