Concur. My various Vanguard funds have consistently outperformed (sometimes significantly) their corresponding TSP funds.Why would you give up the flexibility, ease of use, and customer service of a fidelity/vanguard/ etc Roth IRA in order to do it through the gubment's TSP? Vanguard is also very inexpensive.
- Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $173,000. You cannot make a Roth IRA contribution if your modified AGI is $183,000 or more.
- Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2012 and your modified AGI is at least $110,000. You cannot make a Roth IRA contribution if your modified AGI is $125,000 or more.
Why would you give up the flexibility, ease of use, and customer service of a fidelity/vanguard/ etc Roth IRA in order to do it through the gubment's TSP? Vanguard is also very inexpensive.
Just to make sure you understand the tax difference: a Roth defers your tax advantage until you withdraw the money post 59.5 years old. The standard IRA or TSP gives you tax savings now (reduces this tax year's AGI).
I just worked my last day in the Navy, and at some point will start a thread talking about the things I did to prepare for retirement, but will post this for now. We converted our regular IRAs to Roths when the law changed (letting us spread the tax charge over 4 years) and I've maxed out TSP since it was introduced. We can pay the cost to roll my TSP into a Roth account, but I haven't decided if it is worth it or not yet (leaning towards not). My advice to any JO would be to max out a Roth IRA first, then contribute as much as you can to a regular TSP.
My advice to any JO would be to max out a Roth IRA first, then contribute as much as you can to a regular TSP.
Max normal contribution is 5,000.
Max TSP contribution on top is 17,000 this year.
Quite a deal if you have the cash to do it.