kinda like the page..when you scroll down the popup chat seems to move out of the way...page had everything i needed, not too fancy and straight to the point...
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Lots to consider but generally the closer you get to retirement and the less time you have to invest the less benefit you gain from the ROTHs. If you are a youngster and can start putting money in your ROTH early in your career you will usually benefit much more than someone who waits till later in their careers to contribute to the ROTHs. JMHO
correct....but plan to use the roths in about 10 years....if at all....easier to leave to heirs if i don't use it...can also be used strategically along with a traditional tsp or ira to lower your taxes...do not forget you hopefully have 30 years in retirement so the roth could really increase if you leave it alone for a while
The key to Roth type plans is time. Time to offset the fact that you already paid taxes on the earned income before you added funds and time to allow the funds to grow. Which in my opinion suggests by the time you are 50 (plus or minus a little) you should already have a Roth in place. After that, since you are likely earning more money and in a higher tax bracket, it might make sense to emphasize money into before-tax accounts.
If you expect to be in a lower tax bracket after retirement, then use that money first and let the Roth continue to grow and become a source of tax free income later in life. There is no best answer unless you have a crystal ball and know how your life is going to play out.
Don't underestimate the value of the Roth. For those who have have contributed 10% or more to their TSP accounts for many years, you may end up in the same or higher tax bracket after you retire. If you need to take a large withdrawal in retirement, it can easily place you into a higher tax bracket. What you really need is a withdrawal plan in retirement taking into account what happens when you reach 70.5 and are subject to Required Minimum Distributions (RMDs). Regular IRA/401k/TSP etc are designed to be expended during a single life time with RMDs. Roth accounts do not require RMDs and the tax free benefit can be passed on to heirs.
Make sure your beneficiaries know that they can transfer retirement accounts to inherited IRAs. They will be in shock for the taxes they will pay if they take the full distribution on a traditional retirement account in a single year. Roth is best option for leaving a legacy to the next generation. For Roth and after tax contributions (from deployments) in military accounts, it may be wise to make sure your beneficiaries are aware your contribution history.
For married individuals, look at the impact to your tax rate with your anticipated income & the difference between Married Filing Jointly and Single if your spouse dies. If your spouse is getting a 50% reduction to your pension, the impact is not as much but it depends on how much you have in your TSP/IRAs.
Another benefit of the Roth is that your beneficiaries do not have to pay tax and it continues to grow tax free, however, you need to meet the 5 year rule for this to be true--meaning that your first contribution has to be at least 5 years prior to your death for a non-spouse beneficiary or earnings will be taxable. A Spouse can assume Roth as their own.