Thread: Roth Tsp

Originally Posted by luv2read

both my parents are retired feds. They have no earned income. Their SS is taxed.

This stinks. SS deposits are taxed when you EARN them. Taxing again at disbursement is double taxation. How did they ever get away with passing this on top of the WEP and OFFSET?

I went to this site, and it said if you are at the full retirement age you get full benefits:
http://www.ssa.gov/pubs/10003.html

What I love is it doesn't tell you the tax level you will have to pay.

http://www.socialsecurity.gov/retire2/annuities.htm

Says no pensions or retirements, interest or dividends affect your benefit.

but
http://www.socialsecurity.gov/planners/taxes.htm

nails ya, and my wife is 6 years older than me.

Which means SHE won't get full benefits until she is 71, because I work...Nice freakin system.

luv2read: Well, there once was a group of people that needed to support their programs. So, these people got together and decided TAX SS because they didn't want the rich to get richer, so there's your tax.

pssst.....(whisper mode) It wasn't the Republicans.

BTW, a Roth IRA explanation on how it affects your benefits:

http://www.fairmark.com/rothira/socsec.htm

And if that wasn't enough:

http://abcnews.go.com/Politics/Story?id=3638710&page=1

Let them take even more from those who prepare for their retirement.

I know the prefered thing to do is open a Roth on the outside, but in my case, my wife and I both put in the $5000 in our Vanguard Roths. I contribute about 7% to the TSP. I contribute up to the point where I cross into the 25% bracket. Why contribute more? Since every dollar I save I get a 15% reduction in taxes, but when I retire I will be in at the minimum of the 15% bracket, but more likely higher based on the spending rate of congress (I see tax hikes coming). Give us the Roth TSP so we can have a full rounded plan like many private companies have. I thought the government was suppose to lead by example.