Is Thrift Saving Plan (TSP) the same as an IRA?

Forum|Forum|7 years ago
June 1, 2019
3 replies
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TurboTax Deluxe Online

Best answer by PaulaM

No, they are not the same type of retirement plan.

TSP-The thrift savings plan is a defined-contribution plan designed to give federal employees the same retirement savings related benefits that workers in the private sector enjoy with 401(k) plans. Contributions to the plan are automatically deducted from each paycheck

IRA-An Individual Retirement Account (IRA) is a type of savings account that is designed to help you save for retirement and offers many tax advantages. There are two different types of IRAs: Traditional and Roth IRAs. These plans are set up separate from your employer. You initiate the setup on your own.

Both great retirement vehicles.

PaulaM

Answer

Alumni - Expert

No, they are not the same type of retirement plan.

Both great retirement vehicles.

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dmertz

Level 15

In other words, the TSP is not an IRA.

byebyecash

Level 2

Hi,

I have AA and D in block 12 of W-2 with amounts and am completing the deductions and credit section of the Turbo Tax and need advise as to wether I have to list these totals as Traditional and Roth contributions or is it taken care of in the W-2 section? I think this (deductions and credits section/Traditional and Roth contributions) applies to non-TSP IRA that i am sure does get listed in that section. Please clarify.

Kevin

dmertz

Level 15

It's taken care of in the W-2 section. These are contributions to a 401(k) or the federal TSP, not to an IRA.

byebyecash

Level 2

Thank you dmertz! If I could make a recommendation it is that that be posted on the site in that section if possible. Something like if your W-2 lists ...... then you do not need to report it here. Thanks for consideration and your help!

Kevin

gbjess

Level 2

Question: If a person ONLY has a TSP they should NOT check the Yes box saying they have a Traditional IRA?
Thanks to anyone actually reading/replying

VolvoGirl

Level 15

Right. Is it not a IRA.

gbjess

Level 2

Thank you for replying.
I accidentally answered YES to the traditional or Roth IRA question, but can not get back to the original page to check No. I've went back to the beginning "personal info" as well as the retirement section in deductions with no luck. 😢