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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Tough to say what will happen with tax rates but I suspect they are only going up.

I would put money into the Roth TSP to diversify (from a tax perspective) your retirement assets.  This is what I am doing.

Also keep in mind it really is like getting to put in MORE money to your TSP this year - your post-tax $17,500 is more valuable than your pre-tax $17,500.[/quote]

No one knows what will happen but if you are making 240k my guess is there is a good chance you will drop at least one rate bracket in retirement so rates would have to rise 5 percentage points or more before you would paying as much as you are now (by comparison, I think the Bush tax cuts amounted to about 3 points for the highest tax brackets).  Ironically, saving in a Roth makes it more likely you will be in a lower tax bracket in retirement, which makes it less worthwhile to save in a Roth...

Also, while it's true that $17.5k in a Roth is more valuable than $17.5k in regular TSP, it's also true that you may have paid $10k or more in taxes on the Roth money, so the real question is, do you have $27.5K to put in retirement savings and if so, how do you split it.[/quote]

You're not factoring in growth on earnings which is all but guaranteed to be considerably more than taxes paid.

I'm in the 25% bracket and will make the same (or more) than I currently do in retirement. I also don't intend to have a mortgage or child care expenses to write off then, so Roth makes more sense to me.[/quote]

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