Reply to What is the deal with a Roth IRA?

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Reply to "What is the deal with a Roth IRA?"

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[quote=Anonymous][quote=Anonymous]If you are high income and expect to stay that way there are other benefits to Roth's versus traditional IRA's.  [b]No mandatory withdrawals at age 70.5.[/b]  $ just keep accumulating tax free, and no tax on withdrawal.  And with regard to estate planning:  The Roth doesn't have to be liquidated when you die; the beneficiary can withdraw it over an extended period, no tax.  A bonanza for a young person.

It's a gross manipulation of legislative power for the benefit of the rich.  But if you're eligible and can benefit, you might as well use it.[/quote]

That is not true of the Roth TSP. You do have a mandatory withdrawal at age 70 1/2, just as with a Roth 401(k). Roth IRAs do NOT have a required minimum distribution (RMD) at age 70 1/2, however. Also, to clarify a few items: you can only put new money into the Roth TSP. in other words, you cannot make a transfer on 4/15 after you've considered what your tax liability would be. Your Roth plus traditional TSP contributions total is limited at $17,500 for 2013. So you can do the Roth for 2013, but only for a couple more pay periods.
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