Q. Does a Vanguard Roth decrease the elective amount that I can place in the Thrift Savings Plan? This year, I have already maxed my Vanguard Roth to $5,000. Can I only place $12,000 into TSP, or can I still contribute the total $17,000 to TSP? I understand that if I contribute $5,000 to the Roth TSP, I can only place $12000 into the regular TSP. Does the Roth TSP preclude from using the Vanguard Roth?
A. The amount you contribute to a Roth IRA does not affect the amount you may contribute to the TSP, but your income might limit the amount you can contribute to a Roth IRA while you are eligible to contribute to the TSP. You should consult your tax preparer before proceeding, however.