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I am in the military and many people are telling me to start a TSP. I already have a Roth IRA. Can you contribute to both? Also, is there anything better about the TSP than other retirement plans?
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TSP is the government version of a 401K. It used to be only offered to civilian federal employees but in Oct. 2001 military members could join and contribute. My DH retired in 2003 so it wasn't worth it to contribute for only 2 years.
Yes, you can contribute to both. I think that anyone who has the option should. My DH works for the Federal Govt now and it was one of the first things we signed up for. Between his military retirement, TSP and FERS (Federal Employee Retire System) we are pretty much set for retirement.
I know on the Federal side they match up to 5%. You can get most of your questions answered at The Official TSP Home Page, maintained by FRTIB; 2008-05-22 -
Yes, you can definitely contribute to both the TSP and any IRA you may have. Unfortunately the military doesn't get any match at this point, but even still, I'd recommend anybody to contribute who is able to. The costs are ridiculously low (last year, it was $.15/$1000, __%) and has the same tax advantages as a 401k. I'm contributing a few hundred dollars to both (TSP and Roth) each month.Comment
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