Hi Charlie,
If possible I think you should contribute what you are now to the traditional tsp and open up a separate Roth outside of the tsp. The money from your paycheck that goes to the Roth tsp is still after taxes. The only advantage with the Roth tsp is the low management fees, but with some large outside brokerages you can find low fees with their Roth plans.
Also another huge disadvantage (I think it is anyway) to contributing to both is that they share the same 19000 limit. So if you are lucky enough to be maxing out the tsp, you'd have to pull back some pretax contributions in order to put money into the Roth TSP.
I'm by no means an expert but those are just my two cents.
Good luck!
~Wilson
On Jul 18, 2019, at 8:47 PM, Charles Kerrigan gr8fun4all2@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
Hi All,
I am 64 years old and still working.. I will probably retire and 4 to 6 years. Recently a financial advisor was speaking with my agency. He was discussing taxes now versus taxes in the future. He threw out a hypothetical that has me thinking. His hypothetical was that taxes today may be lower than they will ever be in the future. Under that scenario, a Roth TSP would make more sense than a traditional TSP. This is my second career I've been with my current position 14 years.. I have contributed to a traditional TSP for those 14 years. My thought is to now begin contributing the max to a Roth TSP. If I contribute the max over the next four years, in addition to the majority of my money I have a traditional TSP, I will have over 100K in a Roth TSP. My thoughts are that if after retirement I need a big ticket item (vehicle, nice vacation, etc.), I can withdraw that money from the Roth without an additional tax burden. Also, I'm currently able to afford the taxes on these new contributions while I am still working.I would appreciate your thoughts (pros and cons) on this scenario.Thank you very much,Charlie
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Posted by: Wilson <protohalo@aol.com>
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