TSP and Roth IRA


Q. I contribute my annual maximum $17,500 and $5,500 for a total of $23,000 to my TSP. I would like to open a Roth IRA and contribute the maximum of $6,500. Is this permitted by law? My adjusted gross income is $90,000 per year. Please advise.

A. Whether or not you contribute to the TSP does not directly affect your eligibility to contribute to a Roth IRA. Your eligibility will depend upon your federal tax filing status and your Modified Adjusted Gross Income, or MAGI. I can’t tell for sure from the information you’ve provided, but unless you file your federal tax return as “Married, Filing Separately”, it looks like you’re eligible to make the maximum Roth IRA contribution for your age. You should review IRS Publication 590 for more information about how the limits will apply to you.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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