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Thread: Dumb Roth Question:

  1. Default Dumb Roth Question:

    Do you still get the agency match if you contribute 100% to the Roth? Also, would contributing 100% to Roth be wise?


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  3. #2

    Join Date
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    Default Re: Dumb Roth Question:

    I would think so, but the downside is it's taken out after taxes, so you'll have smaller contributions if you have percentage-based contributions (and the 5% matching is probably a smaller amount if taken out after taxes as opposed to before)

    It all depends, a wise decision really sometimes depends on the outcome but rule of thumb if you're expecting to be in a higher tax bracket by retirement age then it's supposed to work out for the better, since when you withdraw you don't take a tax hit.

    Me personally I stick with the regular TSP for that account, and opened a Roth IRA with an online broker on the side. There's investment options I like that aren't available with the TSP, but everyone's different.

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  5. #3

    Default Re: Dumb Roth Question:

    Quote Originally Posted by RockChalk View Post
    Do you still get the agency match if you contribute 100% to the Roth? Also, would contributing 100% to Roth be wise?
    Yes, you still get the matching funds when you contribute to the Roth TSP. But while the Roth contributions and their earnings are tax-free at withdrawal, the matching funds and their earnings are not.

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