Roth/TSP question

**azanon** · 02-10-2005, 04:03 PM

This article here on msn was interesting:
http://moneycentral.msn.com/content/...ngs/P34211.asp

Something in that caught my eye though, this part:

"Congress authorized Roth 401(k)s way back in the 2001 tax reform package but pushed the implementation date off to 2006.

You won't get to contribute more to your plan. The total that can be contributed would remain the same ($14,000 this year, $15,000 in 2006). But the worker can opt to make part or all of their contributions after-tax to get tax-free treatment later."

Apparently i misunderstood that max limit (13K last year) to just apply for TSP alone, but if i'm reading that right they really mean the max you can put in TSP PLUS your Roth IRA was 13K last year and 14K this year. Am I understanding that right?

**Mike** · 02-10-2005, 04:15 PM

That is confusing. From the context of it in the article, I *think* she means that if a Roth 401(k) is part of your employer's retirement plan offered to you, the $14k cap applies to that plus your regular IRA...

I don't know, though. :*

**Rolo** · 02-10-2005, 04:27 PM

I would think that it is independent of your other retirement plans just like the TSP is independent of Roth IRA contributions.

**azanon** · 02-10-2005, 04:31 PM

OK yeah i see that now, its a "Roth 401K". So for this year 14K max to TSP (if your salary was high enough) + 4K per Roth IRA.

**Rolo** · 02-10-2005, 06:17 PM

Right! Ima try to do that next year, max TSP to $14K and max Roth and SEP. I should prolly research AMT first, heh.

**azanon** · 02-10-2005, 06:41 PM

If you can hit that max figure for your TSP, you've got a nice job. By my guesstimation, it'd take at least a stepped out GS-13 or better to pull that off.

**Mike** · 02-11-2005, 03:28 AM

The average federal employee would have to request ~30% witholding to hit that maximum. :shock:

02-11-2005, 04:34 AM

Rolo, That is a very scary avatar. Isit a photo of John Wayne Gacy?

02-11-2005, 05:00 AM

greg wrote:

Rolo, That is a very scary avatar. Isit a photo of John Wayne Gacy?

Clever greg Rolo, What's going on with you?

Are you trying to fill the vacuum that MT left? I didn't know you were so... not sure how to characterize.. so aggressive?

**Rolo** · 02-11-2005, 05:54 AM

Wonder Woman wrote:

Are you trying to fill the vacuum that MT left? I didn't know you were so... not sure how to characterize.. so aggressive?

Dahell are you talking about?

[line]

Mike, Az: My gov't job is not my only source of income.

02-11-2005, 12:25 PM

Rolo wrote:

Wonder Woman wrote:

Are you trying to fill the vacuum that MT left? I didn't know you were so... not sure how to characterize.. so aggressive?

Dahell are you talking about?

I thought you were getting to be a basher and attacker on different other threadsbut it's hard to make sense of all these different threads at times soif you're not aware of any changes forget I mentioned it.