MonikaK1
Expert Alumni

Get your taxes done using TurboTax

Your Form 1099-R from the Federal Thrift Savings Plan is not treated the same way as an IRA. Check your entries in TurboTax to be sure you didn't identify your TSP as an IRA, because the contribution limits are different.

 

Your participation in the TSP does not affect your eligibility to also separately contribute to an IRA. However, the Internal Revenue Code (IRC) establishes limits on the dollar amount that you can contribute to eligible employer plans like the TSP and to individual retirement accounts such as traditional IRAs and Roth IRAs.

 

The IRC § 402(g) elective deferral limit (which applies to the TSP) for 2022 is $20,500. This limit applies to the traditional (tax-deferred) and Roth contributions made by an employee during the calendar year. The combined total of traditional (tax-deferred) and Roth contributions made during the calendar year cannot exceed the elective deferral limit. The elective deferral limit does not apply to Agency/Service Automatic (1%) Contributions, Agency/Service Matching Contributions, catch-up contributions, traditional contributions made from tax-exempt pay, or amounts transferred or rolled over into the TSP.  See here for more information about the TSP.

 

See here for more information from the IRS on contribution limits for 2022.

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