Is it possible for active duty to contribute to any other tax advantaged accounts besides TSP/IRA? I know federal employees can use 457/403b/IRA/HSA/etc but are there any other backdoor methods for active duty?
Currently maxing TSP/IRA and looking for other accounts to take advantage of
Posted by TangoQ20
4 Comments
Nope. 529s depending on your state I guess, but those aren’t employer sponsored.
Please correct me if I’m wrong, but I don’t think there are more tax-advantaged accounts besides Roth IRA and Roth TSP.
Good job on investing though! That’s like $30k/year of tax free growth
If you’re enlisted or O1-O2, a little known fact is that long term capital gains don’t kick in until over $48k of taxable income *after* the standard deduction. And qualified dividends get taxed at the long term capital gains rate.
So you could contribute to a taxable and then “cash out” the gains before you start making more than $60k in pay and pay no taxes.
Just in case you want to deviate from the reddit advice of maxing retirement accounts and keeping an absurdly high savings account because taxable brokerages are scary.
While AD, you can’t contribute to an HSA and there is no backdoor way for it. And even a spouse may not be eligible if they’re covered by Tricare.
The only other account is a 529, which would be a Roth-like account for education expenses.