TSP going ROTH

[draad]

For those who care:
https://www.tsp.gov/whatsnew/roth/index.shtml

 

[Silhouette]

Is Roth right for me? Heck yeah, it is! Hope everyone passes this info on to their Marines, Sailors, Airmen, and Coast Guardsmen.
Thanks for the update, draad.

 

[draad]

Not to mention the $5k limit....now $17k through TSP

 

[bert]

Not to mention the $5k limit....now $17k through TSP

You can contribute to both. There is another thread around here somewhere that covers it.

 

[Nevermor70]

This is awesome, especially for newer guys. A brand new E-1 is definitely going be better off paying a lower tax now on their contributions rather than taking a bigger tax bite when they actually go to retire and can expect to have a higher income.

 

[Picaroon]

You can contribute to both. There is another thread around here somewhere that covers it.

So I can put $5k into my Vanguard Roth this year, and up to 17k (not that I'll get close on ensign pay with bar tabs) into the TSP Roth option in the same year?

 

[villanelle]

So I can put $5k into my Vanguard Roth this year, and up to 17k (not that I'll get close on ensign pay with bar tabs) into the TSP Roth option in the same year?

My understanding was that Roth money is still Roth money, and thus subject to the $5k annual limit, total, across all Roth funds. So you can put $5k into your Vanguard Roth (or your TSP Roth, or split between the 2), and then you can invest additional money into a regular TSP account (non-Roth). Is that not correct?

 

[pourts]

So I can put $5k into my Vanguard Roth this year, and up to 17k (not that I'll get close on ensign pay with bar tabs) into the TSP Roth option in the same year?

Correct. This was discussed earlier in another thread, as bert said. The best part is you can put untaxed combat pay into the Roth, and basically never pay tax on that money.

 

[pourts]

My understanding was that Roth money is still Roth money, and thus subject to the $5k annual limit, total, across all Roth funds. So you can put $5k into your Vanguard Roth (or your TSP Roth, or split between the 2), and then you can invest additional money into a regular TSP account (non-Roth). Is that not correct?

Negative.

 

[scoolbubba]

Can't find the other thread with search. Can anyone point me in the right direction?

 

[pourts]

http://www.airwarriors.com/community/index.php?threads/roth-tsp-option.38576/#post-684945