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Or you can now use TapaTalk again!TSP to have a ROTH option..
- Thread starter tsptalk
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Viva_La_Migra
Well-known member
I can hardly wait!
I wonder if I'll have any after tax income to invest once the Bush tax cuts are repealed. 
burrocrat
Well-known member
sure, it means after you pay your taxes you can take five thousand dollars and put it in an account that will grow and grow and never be taxed again, until the rules change. then it will be spent on war, again. but's that's ok because they make all sorts of wonderful flavored alpo these days.
just think accounting slight of hand, it's a six letter word, or is it two words and seven letters? i get it all confused sometimes, actually most times.
"them dam fools just 'made off' with my money."
have you checked out the beltway yet?
http://www.beltwaytalk.com/forum.php?referrerid=6In addition to everyone said Roth TSP is not limitted by AGI for high earner, but Roth IRA is limitted by AGI with $5K max. If you are around 30 yrs old - GS12 and above and/or have at least 30 years to go, then I highly recommend to invest in Roth TSP as likely your account will increase to over Mil and you can withdraw for tax free after 59.5.
I plan to transfer all my balance (maybe I have to divide by several years to keep in low the tax bracket) to Roth TSP and invest to the max that allow me to take advantage of tax free.
Viva_La_Migra
Well-known member
I'm confused. A savings plan will earn taxable interest, whereas the Roth will not, right? Unless you're talking about stuffing a mattress with money for use after retirement, I would think the Roth would be a better option. What am I missing?
:blink:
Birchtree
Well-known member
You are missing the fact that a Roth can devalue depending upon what you own. A savings account currently pays nothing and when you want to shift other deferred income into a Roth the tax will be based on your AGI. Your annuity will keep your tax basis elevated - there ain't no place to hide. Those with a defined contribution retirement plan assume market risk but have more flexibility to control their income.
Frixxxx
Moderator
Tax implications....If you NEED to defer taxes this year to keep your AGI number down, it may not afford you the capabilty to contribute to a ROTH.I'm confused. A savings plan will earn taxable interest, whereas the Roth will not, right? Unless you're talking about stuffing a mattress with money for use after retirement, I would think the Roth would be a better option. What am I missing?:blink:
Everyone needs to weigh their choices before choosing!
Roth TSP is NOT NOT NOT an IRA. There is not a $5k limit.
You have a TSP limit. For people under 50, the limit is $16500. If you're older, you can contribut up to $22000. When they allow us to make a Roth contribution, you can choose either the tax-deferred option you currently have, or you can choose the (pay income tax now and pay no taxes later) Roth option.
Most people can sign up for a Roth IRA today through any investment company and contribute $5k a year.
I don't get how people here pay attention to every detail of performance and interfund transfer limits, but don't know what the Roth options are.FatMoneyClip
New member
Have we heard any updates on when the Roth TSP option will start? The official line on www.tsp.gov is 2011, but that info is from July 2010 and I have not heard any more recent updates.Similar threads
