What is the difference between a Roth TSA and an individual Roth IRA, and what are the contribution limits?
A2. Both the Roth TSA and the Roth IRA are set up with after-tax contributions. While Roth IRA accounts are established by individuals, the Roth TSA is part of an employer-sponsored plan. Individual Roth IRA limits are restricted based on income levels, whereas the Roth TSA is not subject to income limits. The maximum annual contribution under a Roth IRA for 2009 is $5,000 ($5,000 for those age 50 and over), while the contribution limit under an employer-sponsored Roth TSA program in 2009 is $16,500 ($22,000 for those age 50 and over). Q3. Can I contribute to both an individual Roth IRA and my employer-sponsored Roth TSA? A3. Yes. Again, the Individual Roth IRA is subject to income limitations. Q4. Can I have a mix of both pre-tax TSA and after-tax Roth TSA contributions in my employer-sponsored TSA program? A4. Yes. Participants can have a mix of both types of investments in their TSA account. However, the total TSA contribution limit (from both regular TSA and Roth TSA) is subject to
