Can You Contribute to both Roth TSP and Roth IRA in the Same Year? | Christy Capital Management

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Ok...so a question we get a lot is, Can I do Roth inside of the TSP and do Roth outside in an IRA in the same year?

Well, the answer to that is it depends.

The Roth IRA and Roth TSP are under different rules.

IRAs are subject to the IRS publication 590 and have a contribution phaseout.

Whereas Roth TSP is subject to ERISA rules and it doesn't have income limits.

So I’ll start with Roth TSP.

Let's imagine that for 2023 that you’re going to be able to contribute $20,500 per year to the TSP if you are under the age of 50.

If you’re over the age of 50, you’ll be able to contribute $28,000 to the TSP.

Now all of that money can go to the Roth side if you want it to.

There’s no income limit so the highest-paid federal employee can still do this.

Keep in mind the match is gonna go to traditional, regardless of whether you select Roth or traditional for YOUR contribution.

So if you’re maxing it out and you’re over the age of 50 you could contribute $28,000 to Roth TSP.

Now if you look at the Roth IRA and you’re under the age of 50 you can contribute $6500.

If you’re over the age of 50 you can contribute $7500. Now there are phaseouts based on income.

If you’re single or head of household and your modified adjusted gross income is somewhere between 138,000 and 153,000 it starts to get phased out where, if your income is over 153,000, you cannot contribute directly to a Roth IRA.

If you’re married filing jointly that phase out at 218,000 to $228,000, married filing jointly modified adjusted gross income.

So in this case you can earn too much money and would not be allowed to contribute to a Roth IRA.

However, at those income levels, you still could contribute to a Roth TSP.
They are subject to different rules.

So the basis of this question is, can you do both. If your income is below the threshold, and you are allowed to do Roth IRA then yes you can do Roth IRA and Roth TSP. Everybody can do Roth TSP regardless of your income. Roth IRA has that income phase-out.


The information provided is not intended as tax or legal advice. Figures shown are for illustrative purposes only furthermore, the information nor the illustrations provided may not be used to avoid any tax penalties. This content represents the general views of Christy Capital Management and should not be regarded as personalized investment advice Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice. Retirement Benefits Institute, Inc., and a portion of its contents merged with Christy Capital Management Inc. Brandon Christy, former President of Retirement Benefits Institute, is also the current President of Christy Capital Management, Inc, a registered investment adviser.