An overwhelming number of federal employees that come to me for help have most of their retirement assets in a tax-deferred account, meaning the traditional Thrift Savings Plan (TSP) and/or a traditional IRA. And while saving diligently in your TSP throughout your career is a great thing, using other account types to build diverse taxContinue reading “What Federal Employees Need To Know About Tax Diversification?”
Tag Archives: Roth IRA
What Happens When Federal Employees Make Ineligible Roth IRA Contributions?
Most of us can agree that Roths are great. Whether it be your Roth TSP or a Roth IRA, these accounts provide tax-free income in retirement, the opportunity to limit the taxation of your Social Security benefits, and they don’t have Required Minimum Distributions – while this last one only applies to Roth IRAs. ButContinue reading “What Happens When Federal Employees Make Ineligible Roth IRA Contributions?”
The Backdoor Roth IRA: What Federal Employees Need To Know
A common question I get from highly motivated savers is whether they can contribute to their Roth TSP and a Roth IRA each year. And while having a TSP does not prevent you from having a Roth IRA, if your Modified Adjusted Gross Income (MAGI)* is too high, you will be ineligible to contribute toContinue reading “The Backdoor Roth IRA: What Federal Employees Need To Know”