Page 2 of 2 FirstFirst 12
Results 13 to 20 of 20

Thread: Hello and a question on TSP loan and contributions

  1. #13

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    2,105

    Default Re: Hello and a question on TSP loan and contributions

    Mufasa,
    Before you get too creative with your contributions,
    See https://www.investopedia.com/article.../04/042804.asp
    For Backdoor Roths see https://www.investopedia.com/terms/b...r-roth-ira.asp and talk to an investment advisor.

  2.  
  3. #14

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    2,105

    Default Re: Hello and a question on TSP loan and contributions

    Bullit make a good point on the 5 year rule, but the confusing part comes when you start taking distributions if it includes earnings..
    See https://www.investopedia.com/ask/ans...ra-conversions
    I didn't see anything that limits when you can do a conversion as you can rollover TSP or other retirement accounts into a Roth if you can afford to pay the taxes. If you contribute to Roth TSP, that also starts the 5 year clock

  4.  
  5. #15

    Default Re: Hello and a question on TSP loan and contributions

    If still working its super easy to get 5 year clock ticking by just going to your payroll office (in my case its MyPay on line) and change your TSP allocation there (no forms). Window allows you to change and or drop % or amount going to regular TSP versus Roth TSP.
    Please don't take my comments as trading advice /IFTs: 4-20-21=100%G/4-19-21=G85%-i15%/ 4-9-21=60C, 30I-10G/ www.theepochtimes.com

  6.  
  7. #16

    Default Re: Hello and a question on TSP loan and contributions

    Quote Originally Posted by evilanne View Post
    I'm not sure I understand your question.
    Is there a limit on how many Roth IRAs you can have?
    If you already have a Roth TSP, can you open a second Roth IRA with brokerage firm without rolling the Roth TSP to it?
    Please don't take my comments as trading advice /IFTs: 4-20-21=100%G/4-19-21=G85%-i15%/ 4-9-21=60C, 30I-10G/ www.theepochtimes.com

  8.  
  9. #17

    Join Date
    Sep 2006
    Location
    Upstate NY
    Posts
    3,014
    Blog Entries
    45

    Default Re: Hello and a question on TSP loan and contributions

    You can have as many IRA's as you want as long as the combined contributions stay under the IRS limits.

    You can have a Roth TSP and Roth IRA and max them both. I don't think the Roth TSP to Roth IRA would require a 5-year clock though since it's a rollover and not conversion.

  10.  
  11. #18

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    2,105

    Default Re: Hello and a question on TSP loan and contributions

    Quote Originally Posted by DreamboatAnnie View Post
    Is there a limit on how many Roth IRAs you can have?
    If you already have a Roth TSP, can you open a second Roth IRA with brokerage firm without rolling the Roth TSP to it?
    Quote Originally Posted by Bullitt View Post
    You can have as many IRA's as you want as long as the combined contributions stay under the IRS limits.

    You can have a Roth TSP and Roth IRA and max them both. I don't think the Roth TSP to Roth IRA would require a 5-year clock though since it's a rollover and not conversion.
    Bullitt is correct. The Roth 5 year rule applies to the 1st Roth opened, so it is important to keep track of your various Roths and contributions and to open one sooner than later, even if it is a small amount. Since the 5 year rule also applies to inherited accounts this is important information to pass on to your beneficiaries so they will get the full benefit of tax free growth. My understanding is that even if you open a 2nd Roth it falls under your original contribution. As far as a conversion of a Roth TSP to Roth IRA, the clock would start with your original contribution to the Roth TSP, so if it has been less than 5 years when you do the conversion you would have to wait the remaining time if you want to withdraw the earnings tax free. One thing I'm not sure of is if you retire before age 59.5, how a Roth distribution is handled if you were to withdraw all of your Roth including earnings. I know for traditional, if you are at least 55 when you retire you can take out whatever amount you want to without penalty but the rules for Roth are a bit more restrictive and I never contributed to Roth TSP. Generally you contribute for the long term so in most cases it wouldn't be an issue.


  12.  
  13. Default Re: Hello and a question on TSP loan and contributions

    What is a Roth TSP? Is it when I move my current TSP balance over to a self-managed Roth IRA? Can it be done? Holy smokes this would be awesome. Bloody hell I get better returns trading on my own but it is the taxes on cap gains that's really putting a damper on my gains. I can't believe what a great site this is. I just can't thank the founders enough!!!

    Btw, are you aware if TSP allows to sell covered calls? Do you know if naked put selling is allowed if you have an IRA? I'd basically like to purchase a few stocks I want in my portfolio for the long run. However, I was given big no for the IRA account. I am with TD Ameritrade. Do you know if Schwab or anyone else allow? Million and half thanks!

    Quote Originally Posted by Bullitt View Post
    You can have as many IRA's as you want as long as the combined contributions stay under the IRS limits.

    You can have a Roth TSP and Roth IRA and max them both. I don't think the Roth TSP to Roth IRA would require a 5-year clock though since it's a rollover and not conversion.

  14.  
  15. #20

    Default Re: Hello and a question on TSP loan and contributions

    Quote Originally Posted by mufasa View Post
    Hi All,

    I am 50 and been in the service for little over 13 years. I did not know about this forum. So glad to find it. Please bare with me in case I do not follow a decorum or have the question posted in the wrong thread. I have a ways to go before I retire. I have a paltry $205K in the TSP. I also have a $25K loan that I have to pay off at 2.835% I took to purchase a home. I pay about $310/month for the loan. At this rate I will pay the loan off in about seven years. I am thinking of keep paying my loan at the current rate and increase my TSP contributions to the max and also do the extra catch up as I turned 50 last month. Should I pay off my loan down faster instead of increasing my retirement contribution and lose out on potential gains that I could get more than 2.835%? I'd appreciate your thoughts. Many thanks in advance! Respects and a lot of smiles. Mufasa
    Keep the loan and just continue to pay off. Do the max TSP contribution and also do the max catchup.

  16.  
Page 2 of 2 FirstFirst 12

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
SPY (C Fund) (delayed)
Hello and a question on TSP loan and contributions
(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)
Hello and a question on TSP loan and contributions
(Stockcharts.com Real-time)
EFA (I Fund) (delayed)
Hello and a question on TSP loan and contributions
(Stockcharts.com Real-time)
BND (F Fund) (delayed)
Hello and a question on TSP loan and contributions
(Stockcharts.com Real-time)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes