Wife is accepting a Federal position and will qualify for FERS / TSP.
I have been reading as much as I can about the benefits so we can get her setup and maximizing everything from day one.
So far it looks like the TSP is similar to a 401k and the limits are similar however I keep seeing sites that reference that you are only allowed to put in $18,500 for 2018 (plus catchup contributions if you are old enough) but from the TSP site it shows the same 55K max as a standard 401K.
While I understand that the employee pre-tax contribution for a standard 401K is $18,500 for 2018 I am allowed at my work to contribute up to the total of the 55K limit 18,500 pretax + 1% company match + after tax to reach 55K limit.
Looking at the form to start the TSP it has the following options.
Traditional (Pre-Tax) Contributions
Roth (After-Tax) Contributions
https://www.tsp.gov/PDF/formspubs/tsp-1.pdfAnd from the TSP site it shows the 55K max
https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/contributionLimits.htmlIf this were a normal 401K I would set it up to max out the pre-tax over the entire year to reduce our taxable income, get the full match and then put in additional money into the Roth after tax account up to the allowable max of 55K in 2018.
Am I missing something with how the TSP works?
Do they only allow you to put in $18,500 total?
Hoping to put in a big chunk of money into a Roth every year if the TSP will allow it.
Would also love to hear any other suggestions for optimizing / maximizing federal benefits.