Author Topic: Can I contribute to a TSP & SEP IRA?  (Read 342 times)


  • Stubble
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    • This Frugal Father
Can I contribute to a TSP & SEP IRA?
« on: March 13, 2018, 01:09:59 PM »
I have been maxing out my TSP for as long as I've been with the gov't, as well as my Roth IRA for that matter.  This year since taxes are a bit lower (normally in 28% tax bracket or top of 25%) I'm shifting some of that month to Roth TSP, so $10k to TSP and $8.5k to Roth TSP.  Normally I max out my Roth IRA soon after the new year starts, but due to the switch of some of my money to the Roth TSP my taxable income will be a bit higher, and I just want to make sure it doesn't go over, so won't contribute until after I do my taxes next year.

I also coach travel soccer and get paid (not a lot) but after expenses and mileage are deducted I still make a few grand/year.  I get paid on a 1099 so don't get taxed on each pay check.  I allocate a bit more money from my gov't job to taxes for this, but as a 1099 employee I get taxed high b/c you don't get Social Security paid by your company, so my tax bill is always high for this portion and it is always very frustration. 

I read an article about "self owned businesses" this year though, and while I am not a business owner, I am paid on a 1099, and it seemed like I could contribute to a SEP IRA because of that.  Maybe I'm wrong though... 

So am I allowed to contribute to a SEP IRA at all by being a 1099 employee, and if so, should I, and if I should, am I throttled by the amount I already put into my TSP and/or Roth(s)?  Or is this treated totally separately?  I just hate paying like 35-40% taxes on my 1099 part time salary and would like to throw even more into retirement accounts if possible.