A buddy of mine recently asked:
Can you double dip Roth TSP and Roth IRA? (Contribute the maximum to both plans in one year)
YES! Technically, I wouldn’t call it double dipping, because the IRS treats them completely differently. The Roth TSP is treated as an “employee retirement plan” while the Roth IRA is an “Individual Retirement Account.”
Your 2013 contribution limits are:
So if you were to deploy or go TDY to a combat zone at any point, during those months you were deployed you could put up to $23,000 of pay into your combo Roth TSP + Roth IRA.
That’s $23,000 that goes in tax free, grows tax free, and eventually pays out tax free. That’s like some 1%-er, Cayman island level tax planning right there.
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1. Bank with a military friendly bank, like USAA. I've been a proud member of USAA for 6 years now and have never had a better customer experience with any other bank. They charge no BS fees, refund ATM fees, and have the best auto insurance prices for military servicemembers.
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