Thread: What is "Your tax exempt Ballance $####.##"

Yes...Yes!

Your TSP is tax deferred. You owe US a % of gains, if you take it out. Otherwise compounding works to your advantage over the years. In theory, when you retire you will have more $ to transfer to a IRA of which you can draw funds from. However, You still owe US their due!

So the "“Your tax exempt balance $####.##�is the amount that stays tax defered. I not really understanding becuase the ammounts are diffrent from the total balance of the account. I'm new to TSP :?so I'm not completly understanding. Or is the gains the defrence between the tax exempt amount and the total balance fo the account. :hMost of that mumbo you wrote just went over my head. LOL.

The government (US) needs their money on any profits you made (the IRS). The TSP is tax deferred (you don't pay them) it's deferred. But you got to pay them sometime. Generally, after you retire and you withdraw money from your IRA that you transfered the funds to.

In a non tax deferred mutual fund you have to pay taxes on yearly profits, just like your salary!

See your accountant for details. This investment option needs your understanding!

Rgds, Spaf

:PI hope I don't sound stupid. But I do understand that my money that I earnd in my investmentis tax defered till I draw it out to either use it or reinvest it into an non tax defered investment. So my final questions is what is this dallor amount represent in this statment, "Your tax exempt balance is $####.##". Is it the abount of dallors I invested over time, or is it the interest I made, or something completly diffrent? It doesn't see to change, except ever once in a while it jumps up to a new dallor amount.

Thank you very much with putting up with this questioning

Chillphill

I checked my TSP site (Civilian), and I don't see that wording. So I can't explain it! Sorry!