What happens to my TSP when I die?
What happens to my TSP when I die?
A beneficiary who is not a surviving spouse cannot retain a TSP account. The death benefit payment will be made directly to the beneficiary or to an “inherited” IRA. If a beneficiary participant dies, the new beneficiary(ies) cannot continue to maintain the account in the TSP.
Can my spouse contribute to my TSP?
If you work for an employer that offers a 401(k), 403(b), 457 or other retirement-savings plan, you can contribute the full amount—$19,500 in 2021, plus an extra $6,500 if you’re 50 or older—even if your spouse contributes the maximum to the Thrift Savings Plan (TSP).
Is there an income limit for Roth TSP?
There is no salary limit for those who want to contribute to a Roth TSP.
Can I roll my TSP into a Roth IRA?
There are no income limits that restrict contributions to a Roth TSP, but such limits exist for a Roth IRA. A Roth TSP can be rolled into a Roth IRA. A Roth IRA cannot be rolled into a Roth TSP or any account other than another Roth IRA.
Is a Roth TSP worth it?
In the Traditional TSP, the money you contribute is pre-tax. This means you don’t pay taxes at the time you put the money in instead you’ll pay taxes when you withdraw the funds. At that time your current tax bracket could be higher than it currently is, which is why the Roth TSP is better.
How much does Roth TSP match?
The first 3% is matched dollar-for-dollar by your agency or service; the next 2% is matched at 50 cents on the dollar. This means that when you contribute 5% of your basic pay, your agency or service contributes an amount equal to 4% of your basic pay to your TSP account.
Should I max out my Roth TSP?
The Thrift Savings Plan (TSP) is a great tool for federal employees to save for retirement. Saving, and even maxing out your contributions to TSP is normally thought of as a good thing. Yes, maxing out your TSP can be very beneficial, but may not be the best thing for your financial future.
Can you max out TSP and Roth IRA?
You can even have both a traditional and Roth TSP account, as long as the total amount contributed stays under the limits. Likewise, you may have both a traditional and Roth IRA account, as long as the total amount contributed stays under the limits.
