Once you leave the federal government, unfortunately, you are no longer eligible to make employee contributions to your TSP. Now for the good news, you can use the earned income from your part-time work to contribute to your Roth IRA in 2022, if your Modified Adjusted Gross Income (MAGI) for the 2022 tax year is under $208,000. Roth contributions are not deductible but the qualified distributions are not subject to tax, so you would likely be subject to tax on the $6,000 of earnings. Although not tax deductible, TurboTax software will ask you for your prior ROTH contributions and current year ROTH contributions in order to help you track your contributions/basis. Also, this contribution would not be subject to RMDs during the lifetime of the owner. If you are interested in a deducting the $6,000 contribution then you may want to consider and IRA contribution in lieu of a ROTH contribution. Assuming you are not covered by a retirement plan that you can contribute into thru your current part-time employer, there would not be an income limit to contribute to the IRA for 2022 and you could deduct the entire contribution. Keep in mind, you will pay tax upon withdrawal and it would also be subject to RMDs. Enjoy your retirement years!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
