Message Font: Serif | Sans-Serif
No. of Recommendations: 4
I am contemplating the removal of contribution limits for Uniformed TSP contributions. My TSP contribution is not matched (I'm active Army). Does it make more sense to contribute max the IRS allows to the TSP or max my Roth IRA and put what balance I can afford into the TSP. I cannot max both.

Since matching isn't an issue, I would max the Roth before doing anything else, with the balance to TSP.

The other question I have is, if I get deployed and all my income is non-taxable, am I allowed to contribute to a Roth if I make NO or very limited taxable income in 2006? Maybe I won't get deployed until Mid to Late January 2006 - if that affects your reply.

I think there is something pending in Congress to deal with this, but I'm not sure. It would allow people in your situation to make IRA contributions even without taxable compensation. I would think someone who handles legal affairs at your installation would have the latest on this.

Thanks for your help,

and thank you for your service.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.