MountainStoneMist t1_j28xbpo wrote on December 30, 2022 at 2:34 PM

>is it worth maxing out my Roth IRA AND my Roth TSP for 2022? Should I combine the two to max out the $6k contribution?

I am a little confused about this statement, Roth IRA and Roth TSP have separate contribution limits.

2022 Roth IRA contribution limit: $6,000

2022 Roth TSP contribution limit: $20,500

Side note: You have until April 18, 2023 to make 2022 Roth IRA contributions.

sadmedstudent2022 OP t1_j28xxdo wrote on December 30, 2022 at 2:39 PM

wow i didnt realize I had until April to contribute toward 2022, thank you! Also, I realize how my question could have been written better. I guess I mean Do you think it is worth it to attempt to max out both?

MountainStoneMist t1_j2902kk wrote on December 30, 2022 at 2:55 PM

Yes, starting on January 1st, 2023 pay close attention to your Roth IRA contributions, you will be able to select which year you apply your contributions to.

It's definitely a worthy goal to max out both accounts only if you are on the correct step according to the money management tips of the prime directive:

https://www.reddit.com/r/personalfinance/wiki/commontopics/

I would go ahead only if you have paid off all high interest debt and have a fully funded emergency fund (lots of people skip this step but they end up regretting it because the minute they get into financial trouble they raid their investment accounts. Think of an emergency fund as insurance that helps protect your investment accounts).

>as well as some digital assets (only a bit please don't judge).

I wont judge, but you can't stop me from giving you the side eye.

sadmedstudent2022 OP t1_j29ed2g wrote on December 30, 2022 at 4:33 PM

I'll give this a read later, thank you! I was specifically wondering about emergency savings as well especially given that I have a house to take care of now. Luckily, no high interest debts or credit card debt at all here. just about 2k in student loans (once biden's forgiveness goes through).

haha I can respect a side eye :) its an asset class I personally believe in and want it to be a part of my portfolio

lakehop t1_j29gyk2 wrote on December 30, 2022 at 4:49 PM

You should definitely max them both, even if you need to cut other saving. Your income will be much higher in future and having tax free retirement savings in future will be a major boon.