There are many scenarios to consider, but most of the military TSP investors pick a percentage and leave it at that. If that is your investment strategy, Roth is the way to go. If you are trying to maximize your retirement contributions and actually invest the tax savings, which I have seen no one in the military do, then it might be worth it if that extra amount causes gains higher then the tax rate at retirement, which for me being in my 30s is completely unpredictable, especially with the national debt being what it is. It's all a calculated risk.
The returns may grow untaxed in the regular TSP, but they are taxed when withdrawn. Also I don't understand your comment about paying more for goods and services. Are you implying that someone with a Roth that has untaxed income will pay more than someone paying taxes with a regular TSP? This doesn't seem logical some with less taxable income will pay more than someone with taxable income for the same services. Currently people with less taxable income pay less or the same for goods and services than someone with a higher reportable income.
Posted by: jarhead_rr@yahoo.com
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