Reply to TSP or TSP Roth Help

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[quote=Anonymous][quote=Anonymous]I would just put as much as you can in the traditional TSP because chances are that you will be in a lower tax bracket in retirement.  See if you can up your contributions to 10% (note that putting 2% in the Roth will take more out of your paycheck than putting 2% in the regular TSP).

Go look at tax brackets and assume you get your pension, and you get SS, and you annuitize your TSP (they give you that estimate, or you can assume you withdraw 4% of final balance each year).  I think it's highly likely that will suggest you will be in a lower tax bracket (and even *if* taxes go up generally they are unlikely to go up enough to be more than your current tax bracket).

Now if you were contributing the max to TSP and wanted to save more, you might want to put money in the Roth instead of the traditional, but I think it would still make more sense to use a Roth IRA for that instead.[/quote]

At your age, PP, you should put the annual max in the regular TSP ($17,500 per year right now).  You will really wish you did in about ten years or so.  Find a way to do it.  Plus you get the guaranteed tax savings.  That's like a 25% return right there! [/quote]

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