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Thread: EIC as a factor in TSP contribution choices

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    Default EIC as a factor in TSP contribution choices

    As a active duty service member, I have built up a sizable TSP balance by maxing out my contributions. Also, I discovered that maxing out my TSP contribution would reduce my taxable income and often make my family eligible for the earned income credit (EIC). A $17k TSP contribution would result with us receiving a $5k refundable EIC so it was a no-brainer. Among other things, I made my large family live with only one car in order to afford the high contributions but I figured that it would be a benefit over the long run.

    Of course, the only certainty in this world is change. One, we now have the option of the Roth TSP which does not reduce the taxable income but it does provide protection against tax changes in the future. Two, I recently received a significant promotion that will increase my base pay by nearly $1k/month. With this increase in my base pay, I would likely not receive such a large EIC in the future (if any at all). So now I need decide what percentage of TSP contributions will be Roth. Has anyone made a excel spreadsheet to determine the optimal contribution ratio?


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    Default Re: EIC as a factor in TSP contribution choices

    Might as well, someone is going to get it! At least you're working.
    12/02/2021
    LS CRUDE Oil
    =$66.50 a Barrel, Daily Status +.93

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