Hey fellow Federal employees, I'm here to answer questions you have
This week we've got a great question from a reader who wants to know more about TSP
contribution limits. This week's question comes over email. It said, hey Tam, I have a question regarding TSP and feel free to send me a link to a post
if you've already dissected it. I'm planning on contributing significantly more to TSP courtesy of a promotion
I'm rocking the 5% match in TSP's traditional size and any extra goes to the Roth size
Can I add more than 6,500 in TSP's Roth? I know the traditional Roth limit found at normal institutions is 6,500 for 2023
I appreciate your insight. First of all, I want to give a big congratulations to this employee
They've been contributing to their TSP for a long time and as they got promotions have
been using it to slowly increase the amount they've been able to contribute to their TSP
And they've just reached a big milestone. This year they're going to be able to contribute more than $6,500 to their Roth on top of all
the money they're putting in their traditional TSP. So I think this is a common misperception about how much you can put in your Roth TSP
The $6,500 she was talking about was actually the Roth IRA contribution, not Roth TSP contribution
In 2023, you can contribute $22,500 to your Roth TSP or your traditional TSP or a combination
of the two. So you can put 10,000 in your Roth TSP and 12,500 in your traditional TSP
For example, the Roth IRA limit is a completely different pool of money
So Roth is like an adjective that describes your type of retirement account
So that $6,500 limit she was talking about, that's the Roth IRA limit
So she can contribute $6,500 to a Roth IRA and $22,500 to a Roth TSP
Sounds like she's missing some traditional and Roth money in her TSP. That's what I do too
But hopefully that clears up any confusion that this reader has about TSP limits
I've linked to some resources below where I've written about this on my blog
And please feel free to shoot me another question and I'll answer it on YouTube
I've put a link below where you can just record a little snippet of your voice online or you
can send me an email. I put all that information below. See you next week.