Max contribution
Moderator: Aitrus
Max contribution
So I know the most you can contribute to TSP is 18k annually. Does that include the government match? If I contributed 18k, would that be too much because the gov is matching 5% as well? Or is the 5% not included in the 18k? And what happens if you over contribute?
Thanks!!!
Thanks!!!
Re: Max contribution
Howdy.. actually it's 18,500 as of 2018 and nope that doesn't include the match. So for instance I max out 18,500k the gov matches an additional 7500.. I'm actually putting in an additional 26k a year! Woo hoo!
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Re: Max contribution
make sure you don't hit the max before the last pay period of the year and lose any of your matching money. They will stop deducting from your check as soon as you hit that threshhold
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Re: Max contribution
and dont forget the over 50 "catch up" of 6000...
Re: Max contribution
mmmmmbeer wrote:Howdy.. actually it's 18,500 as of 2018 and nope that doesn't include the match. So for instance I max out 18,500k the gov matches an additional 7500.. I'm actually putting in an additional 26k a year! Woo hoo!
mmmmmbeer, how is the $7,500 calculated? I know the gov will match up to 5% of your contributions, but never thought about how much that is. Does that come out to $7,500 for everyone doing the max $18,500 yearly contributions or is the 5% related to base salary at all?
Re: Max contribution
I just figured out my own question, nvmd. It's based off of salary for anyone else wondering. I've never realized that though, but I guess every time you get a pay raise, you're also getting a bump in gov match towards tsp, which is sweet!Cpt. Pile wrote:mmmmmbeer wrote:Howdy.. actually it's 18,500 as of 2018 and nope that doesn't include the match. So for instance I max out 18,500k the gov matches an additional 7500.. I'm actually putting in an additional 26k a year! Woo hoo!
mmmmmbeer, how is the $7,500 calculated? I know the gov will match up to 5% of your contributions, but never thought about how much that is. Does that come out to $7,500 for everyone doing the max $18,500 yearly contributions or is the 5% related to base salary at all?
Re: Max contribution
This... but also don't forget you can still partially front-load the year. Subtract your minimum contribution to get the full match through the entire year (don't forget any predictable pay increases!) from $18,500, and that's the amount you can contribute ASAP for maximum benefit.Bologna13 wrote:make sure you don't hit the max before the last pay period of the year and lose any of your matching money. They will stop deducting from your check as soon as you hit that threshhold
Re: Max contribution
Also, if you are fortunate/disciplined enough to contribute $18,500, consider if you can can do that with Post-tax (Roth) money. Specifically, that would be worth more than $18,500 in traditional contributions as earnings on your max contribution would not be taxed.
Re: Max contribution
Neuronic wrote:Also, if you are fortunate/disciplined enough to contribute $18,500, consider if you can can do that with Post-tax (Roth) money. Specifically, that would be worth more than $18,500 in traditional contributions as earnings on your max contribution would not be taxed.
Who has thumbs and is doing this?? THIS GUYYYYY!
Those who 'abjure' violence can do so only because others are committing violence on their behalf.
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Re: Max contribution
And you can add $5500 ($6500 over 50) to a Traditional or Roth IRA account for yourself and another for your spouse (if you have one of those) too.
mo meng, mo ching (which loosely means: no money, no life)
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Re: Max contribution
Just so I'm completely clear:
Max an (unmarried) individual can contribute to an IRA = $18,500 ($5,500 can be Roth, but that comes out of the total so only $12,000 could be put in traditional in this case)
Max an individual can have go towards an IRA (including matching) = $55,000 (so gov't matching COULD be as much as $36,500. The only way to reach $55,000/year is by employer contributions)
These max numbers are doubled for married individuals.
Is this everyone else's understanding?
Max an (unmarried) individual can contribute to an IRA = $18,500 ($5,500 can be Roth, but that comes out of the total so only $12,000 could be put in traditional in this case)
Max an individual can have go towards an IRA (including matching) = $55,000 (so gov't matching COULD be as much as $36,500. The only way to reach $55,000/year is by employer contributions)
These max numbers are doubled for married individuals.
Is this everyone else's understanding?
Re: Max contribution
smcwhorter wrote:Just so I'm completely clear:
Max an (unmarried) individual can contribute to an IRA = $18,500 ($5,500 can be Roth, but that comes out of the total so only $12,000 could be put in traditional in this case)
Max an individual can have go towards an IRA (including matching) = $55,000 (so gov't matching COULD be as much as $36,500. The only way to reach $55,000/year is by employer contributions)
These max numbers are doubled for married individuals.
Is this everyone else's understanding?
Uhh.. no. Max TSP is 18,5k.. all.can be roth max roth IRA is 5,500
Those who 'abjure' violence can do so only because others are committing violence on their behalf.
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Re: Max contribution
IRS Announces 2018 Pension Plan Limitations; 401(k) Contribution Limit Increases to $18,500 for 2018smcwhorter wrote:Just so I'm completely clear:
Max an (unmarried) individual can contribute to an IRA = $18,500 ($5,500 can be Roth, but that comes out of the total so only $12,000 could be put in traditional in this case)
Max an individual can have go towards an IRA (including matching) = $55,000 (so gov't matching COULD be as much as $36,500. The only way to reach $55,000/year is by employer contributions)
These max numbers are doubled for married individuals.
Is this everyone else's understanding?
https://www.irs.gov/newsroom/irs-announ ... 0-for-2018
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Re: Max contribution
The IRS $55,000 max limit applies to "defined contribution retirement plan" not the TSP (which is the same as a 401k). (IRS Pub 560)smcwhorter wrote:Just so I'm completely clear:
Max an (unmarried) individual can contribute to an IRA = $18,500 ($5,500 can be Roth, but that comes out of the total so only $12,000 could be put in traditional in this case)
Max an individual can have go towards an IRA (including matching) = $55,000 (so gov't matching COULD be as much as $36,500. The only way to reach $55,000/year is by employer contributions)
These max numbers are doubled for married individuals.
Is this everyone else's understanding?
Max (unmarried) individual contribution to an IRA = $5500 (for under age 50) $6500 (for age 50 and over)
The IRA can be either Roth or Traditional, same contribution limits. (IRS Pub 590a)
Your maximum contribution to your TSP account for 2018 is $18,500, the government match of 5% isn't part of the $18,500 limit. If over 50 years old, the IRS allows you to contribute an additional $6000 to your TSP account on top of the $18,500 limit.
For more clarification (or confusion) go to the IRS.gov website to read or download the IRS Publications #560, #590a, and any others that interest you.
mo meng, mo ching (which loosely means: no money, no life)
Re: Max contribution
mindofmuch is correct, however, the outside Roth is subject to income limitation. If you are above that limitation, there is the backdoor Roth IRA option.
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