By Mike Miles
July 2nd, 2012 | Uncategorized
Q. I am a FERS employee who has 12 years before I can retire. I have already invested $4,000 in a Roth IRA for 2012 and switched all of my Thrift Savings Plan contributions to the Roth option in May. My financial adviser said I could not invest more than a total of $5,000 in both Roth accounts for 2012 and told me to switch my contributions back to the traditional TSP. Is he correct, or can I invest the $4,000 in the Roth IRA and $17,000 in the Roth TSP? In other words, can I still invest the annual maximum of $17,000 in my TSP for 2012?
A. Your tax preparer is the person to guide you in this area. I can tell you, though, that the TSP Roth contribution limit is not affected by your Roth IRA contributions.
July 30th, 2012 at 6:29 pm
You can contribute the $17,000 maximum to your Roth TSP and $4,000 to your Roth IRA. They are separate.
Al R Says:
August 18th, 2012 at 12:59 am
In as much as your “financial adviser said I could not invest more than a total of $5,000 in both Roth accounts for 2012″ is wrong you may consider replacing with another advisor who knows what he is talking about.
Roth IRA limit for 2012 is $5,000 ($6,000 for those 50+).