Q. I am 29 years old and serve in the Air Force. I contribute the maximum $5,000 amount to my Roth IRA every year, and have a few thousand dollars in the standard Thrift Savings Plan. I am concerned about the lack of investing options besides the G, F, S, C, I and L funds within the TSP. With the new Roth TSP option, would it be possible for me to continue to contribute $5,000 directly to my Roth IRA, then contribute $17,000 to a Roth TSP, and finally roll that $17,000 over to my Roth IRA each year?
A. Your participation in the TSP does not preclude you from contributing to a Roth IRA. If your income level is within the statutory limits, you may contribute to both. Since your access to TSP withdrawals is limited while you are still participating, you will not be free to roll money over each year.