yes. assuming you are under the Roth IRA income requirements. Don't worry about overpaying, TSP won't let you contribute more than $19,500.
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Edit: also know that if you are married you can contribute $6,000 in your partners name even if they are unemployed. To do this you would set up a seperate Roth IRA from yours and contribute to it. That is assuming you both are under the married limits above.
Roth IRAs allow you to withdraw your contributions tax free with no penalty. Your earnings cannot be withdrawn without a penalty for five years.
https://www.schwab.com/ira/roth-ira/withdrawal-rules
Your own link even acknowledge that you can withdraw contributions with no tax or penalty.
There’s no definitive answer on which is better because it all depends on your financial situation. If you anticipate being in a high tax bracket in the future, it’s better to pay those taxes now. Schwab has a good break down of Roth vs Traditional IRAs with a calculator.
If you choose Roth then it makes sense to max both your TSP and IRA before going to tax-deferred accounts like ETFs and individual stocks. Otherwise you’re paying taxes on the gains when you sell them off. If you choose Traditional then you’ll still pay taxes when you withdraw, however, ETFs have the benefit of being available now and not when you retire.
If you’re saving for retirement, definitely put them in a retirement account rather than a simple investment brokerage account.
Open a Roth IRA and you can withdraw any contributions any time without penalty. You can withdraw earnings under certain circumstances. You can contribute up to $6k each year on top of whatever you put into the TSP.
Your earnings will be tax free and can be withdrawn without penalty or condition after age 59 1/2 that you've held for 5 years.
TSP Tracker is another favorite of mine.
TSP Tracker: https://play.google.com/store/apps/details?id=net.comonksr.tsptracker
If You Can: How Millennials Can Get Rich Slowly
Author: Bill Bernstein
> Hi All:
>I’ve come out with a starter retirement finance booklet for millennials that lays out what I think is the fundamental problem with an effective three-fund portfolio which, as we all know, is simple, but not easy.
>It’s not easy, again, as we all know, because people’s plans get hijacked by, among other things, panic during market declines, the temporary success of their neighbors during a tech or real estate bubble, and the Wall Street noise machine. (Or, as that great investment observer Mike Tyson put it, Everyone's got a plan til they get punched in the face.)
>This booklet, If You Can: How Millennials Can Get Rich Slowly, lays out the knowledge base that the young person needs to fortify themselves with to successfully execute a simple portfolio plan. It’s not the complete “course work,” just a road map, and prominently features Boglehead favorites. (Believing it tacky to plug my own overpriced books, I’ve intentionally left them out.)
>It’s available for download in acrobat format at https://dl.dropboxusercontent.com/u/290 ... ou_Can.pdf
>Most folks, though, would rather read it on their Kindle or mobile devices. I’d like to simply give it away, but Amazon only lets me do that 5 days per 90 day period; otherwise it’ll cost the Amazon mandated minimum Kindle price of $0.99. Here's its tentative Amazon page:
>That first free period should start tomorrow or the day after. I’ll leave the free pdf up, and will announce the “promotional” windows for the free Kindle download periodically on the board (assuming I actually understand Amazon’s policy properly).
>PM me, please, if you find any typos.
>Best,
>Bill