For those of you that already have Roth TSP...

[domingo3]

I'm curious if the entry for "TSP Contributions" really is just contributions or if it includes growth. I had read that is the only thing you can see on your account that indicates the Roth portion, and everything else in combined. For tax purposes during withdrawl, just knowing the TSP contributions doesn't cut it. In withdrawl, your roth contributions and their growth are supposed to be tax free. I understand that right now, allocations stay the same across traditional and Roth, but given that contributions to the two are not likely to be in consistent proportions throughout the life of the account, and many of us had a pre-existing traditional balance, I don't think that the calculation of how much is tax free would be straighforward if all you have to work with is a number for Roth TSP contributions. I hope either I am misunderstanding the current system, or they get their accounting straightened out on this.

 

[Birchtree]

I can tell you that if I were still employed I wouldn't bother with a TSP Roth - not enough flexibility. Open an outside plan and keep everything separate and that way there are no complications with our friends at the IRS. A Roth IRA is a purrfect situation to own individual stocks that pay dividends - just reinvest the income as it comes your way.

 

[domingo3]

I agree, but I already max my Roth IRA and spousal Roth IRA. I even managed to sneak some money out of TSP, roll it over to an IRA and convert it into a ROTH. I just want to be able to put some more money into Roth tax treatment, and the opening of the ROTH TSP is my opportunity to do so.

Still, I'd like to know how the accounting is working. By the time I retire, I will have no hair to pull out trying to back-calculate what portion is non-taxable. I would expect that TSP will do that, but it doesn't sound like they are doing the right things yet. Maybe I'm just misinformed. I don't have Roth TSP yet, so I have no first hand information.

 

[Birchtree]

Remember that dividends in an open account (discount) are taxed at a qualified rate of 15%. That' excellent if the rate remains unchanged going forward. The Roth IRA does have a limitation on the yearly amount invested - your Uncle doesn't want to be overly nice. But a Roth on automatic pilot is voondabar.

 

[domingo3]

Can anyone answer my question? There's plenty of other places where opinions on the merits of Roth TSP can be dicussed. If you have a Roth TSP, can you tell me what accounting information you have available that will show what amount of your account will be tax free upon withdrawl?

I'm curious if the entry for "TSP Contributions" really is just contributions or if it includes growth. I had read that is the only thing you can see on your account that indicates the Roth portion, and everything else in combined. For tax purposes during withdrawl, just knowing the TSP contributions doesn't cut it. In withdrawl, your roth contributions and their growth are supposed to be tax free. I understand that right now, allocations stay the same across traditional and Roth, but given that contributions to the two are not likely to be in consistent proportions throughout the life of the account, and many of us had a pre-existing traditional balance, I don't think that the calculation of how much is tax free would be straighforward if all you have to work with is a number for Roth TSP contributions. I hope either I am misunderstanding the current system, or they get their accounting straightened out on this.

 

[James48843]

I also would like to know the answer from anybody who has actually begun having Roth deductions taken out.

I currently have a civilian, and a military TSP account.

I presumed I would have a third account file folder show up to track the Roth separately.

Is that how they do it? Is there a new , second civilian account created for the Roth?

I continue to have some money sent to my traditional account, and have requested a fixed percentage money be sent to a new Roth TSP. I did the request in Employee Express, but it has not yet taken effect.


Can anyone help me out with an answer? Does it show up now as a separate account within TSP?

 

[Viva_La_Migra]

I also would like to know the answer from anybody who has actually begun having Roth deductions taken out.

I currently have a civilian, and a military TSP account.

I presumed I would have a third account file folder show up to track the Roth separately.

Is that how they do it? Is there a new , second civilian account created for the Roth?

I continue to have some money sent to my traditional account, and have requested a fixed percentage money be sent to a new Roth TSP. I did the request in Employee Express, but it has not yet taken effect.


Can anyone help me out with an answer? Does it show up now as a separate account within TSP?

In the "Account Balance" section, take a look at the "Account Balance by Contribution" tab. It lists both traditional and Roth contributions in separate columns. Earnings appear to be separated as well, since my small deposit into my Roth TSP account has already shown a few cents of earnings.

 

[domingo3]

In the "Account Balance" section, take a look at the "Account Balance by Contribution" tab. It lists both traditional and Roth contributions in separate columns. Earnings appear to be separated as well, since my small deposit into my Roth TSP account has already shown a few cents of earnings.

Perfect! I would have looked myself, but I don't have Roth available yet. Thank you!