| Max TSP and 401k investments |
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maximboxer
New Member
Cash: $ 0.90
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Joined: 23 Sep 2006
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| Max TSP and 401k investments |
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I am separating from the Air Force mid-2007 and plan to work for a company that provides a matching 401k. The max TSP investment is $15,000/year, as is the 401k. Does this mean I can invest $15k into my TSP and $15k into my 401k, or are the TSP and 401k classified as the same type of investment by the IRS and I can only invest a total of $15k split between the TSP and 401k? If the latter is the case, I don't want to max out my $15k in the TSP which doesn't match when I should put it into the 401k. Any help is appreciated as I want to max out my investment opportunities including my IRA.
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Sat Sep 23, 2006 12:53 am |
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Shazbat
Contributing Member
Cash: $ 5.90
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Joined: 15 Jun 2005
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Although TSP is not truly a 401K plan, it is viewed as the same in the eyes of the IRS. Therefore, if you invest the full 15K in TSP before you separate, you will not be able to contribute to your new employer's 401K. However, something to be cautious of is your ability to start contributing with your new employer during the first year. Some employers either don't allow contributions early on, or don't provide matching for a while. Ask all of your questions now, because after you separate it will be too late to add to your TSP!!!
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Sat Sep 23, 2006 1:35 pm |
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maximboxer
New Member
Cash: $ 0.90
Posts: 4
Joined: 23 Sep 2006
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Thanks, that's good to know. I appreciate the help!
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Tue Sep 26, 2006 1:51 am |
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