Two More States Exempt Mil Rtmt Pay: AZ, NE

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What is the Roth IRA contribution limit for Midshipmen? I believe that a minuscule amount of their pay is going to some investment plan. What are the terms of this plan and how does it limit the federal Roth IRA contribution limits?

I want to get her started on a Roth and contribute the Maximum this year if I can …. Is it a $7000 limit for Midshipmen?
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Dr. Strange Love said:
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What is the Roth IRA contribution limit for Midshipmen? I believe that a minuscule amount of their pay is going to some investment plan. What are the terms of this plan and how does it limit the federal Roth IRA contribution limits?

I want to get her started on a Roth and contribute the Maximum this year if I can …. Is it a $7000 limit for Midshipmen?
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Click to expand...
When she commissions, she will be able to start contributing to the Federal Thrift Savings Plan (TSP), the Fed version of a corporate 401k. It’s essentially the same rules. I don’t think they can contribute as midshipmen; some regulation applies. I am not sure what else she would be contributing to right now.

Home | Thrift Savings Plan

www.tsp.gov www.tsp.gov

IRA contributions would follow the same rules as any other wage-earner.
 
I just read that the TSP has advantages in terms of being able to “Pile on” the contributions early on in her career — $19,000 I believe additional — versus a Roth IRA with perhaps Fidelity which I see the contribution limit being $6000.

The Investment and intra-day trading options with the TSP are limited like any company based 401k plan.

I just don’t want to break any IRS rules right now. We’re going to open a Roth account for her with Fidelity. I talked to her last night about going aggressive in her investment choices at young age … QQQ, SOXX, and even some more risky “Leveraged” choices
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Aggressive saving for the first 10 years then completely stopping any further contributions is always WAY better than waiting until you get in your 50's to start estate/retirement planning.
 
Can confirm 6k, regular Roth. DS just did his. With a fantastic SAF advisors help 😉
 
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