Have you ever wondered when it comes to taking money out of your retirement account, if you should take it from your Pre-Tax TSP or your Roth TSP? In this video, Micah helps you make an educated decision as you plan your federal retirement! You can find the full article here: Leave us a comment below and let us know what your plan is for your retirement account withdrawals from your TSP! -=-=-=-=- Want to learn more about how you can plan for your federal retirement? Then check out: Plan Your Federal Retirement Website: Do you like listening to podcasts? Want to specifically learn how to better plan for your federal retirement? Then check out: Plan Your Federal Retirement Podcast: Are you looking to work with a financial planner who specializes in the intricacies involved with the federal employee retirement system? Then check us out: Shilanski & Associates, INC.: Also, follow me at these places below and say hi! LinkedIn: Facebook: Until next time, happy planning! Micah Shilanski, CFP® #PlanYourFederalRetirement #TSP Advisory services offered through Shilanski & Associates, Inc., an Investment Adviser doing business as “Plan Your Federal Retirement”. Plan Your Federal Retirement is not employed by the United States Federal Government and does not represent the United States Federal Government. All content on this site is for information purposes only. This website is not personalized investment advice. Securities investing involves risks, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Please review our Customer Relationship Summary (Form ADV Part 3) for important information about our services and fees. Opinions expressed herein are solely those of Shilanski & Associates, Incorporated, unless otherwise specifically cited. Material presented is believed to be from reliable sources, and no representations are made by our firm as to other parties, informational accuracy, or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant, or legal counsel prior to implementation. Content provided herein is for informational purposes only and should not be used or construed as investment advice or recommendation regarding the purchase or sale of any security. There is no guarantee that any forward-looking statements or opinions provided will prove to be correct. Securities investing involves risk, including the potential loss of principal. There is no assurance that any investment plan or strategy will be successful....(read more)
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For many people, the Thrift Savings Plan (TSP) is a valuable savings tool for retirement. Within the TSP, there are two options for retirement savings: pre-tax TSP and Roth TSP. When it comes to deciding which option is best for you, it can be a tough decision. Pre-Tax TSP When you contribute to a pre-tax TSP, you are contributing money before taxes are taken out. This means that your taxable income is reduced, which can reduce your current tax bill. You will also not pay any taxes on the contributions, and any earnings will grow tax-free until you withdraw from your TSP. When you withdraw from your TSP, you will then pay taxes on the full amount, including contributions and earnings. This make pre-tax TSP is great for people who expect to be in a lower tax bracket in retirement. Roth TSP When you contribute to a Roth TSP, you are contributing money after taxes have been taken out. This means that your taxable income will not be reduced, and you will pay taxes on the contributions that year. However, when you withdraw from your TSP, you will not pay taxes on the contributions and earnings, as long as certain requirements are met. Roth TSP contributions can be a great option for people who expect to be in a higher tax bracket in retirement. Which Option is Right for You? In deciding which option is best for you, there are several factors to consider. First, what tax bracket do you expect to be in when you retire? If you expect to be in a lower tax bracket, pre-tax TSP contributions may be the better option. If you expect to be in a higher tax bracket, Roth TSP contributions may be the better option. Another factor to consider is your current financial situation. Pre-tax TSP contributions may be more beneficial in your current situation if you need to lower your taxable income. Alternatively, Roth TSP contributions may be more beneficial if you have extra income that you can afford to pay taxes on now in order to receive tax-free withdrawals in retirement. Finally, consider your personal financial goals. Do you value tax savings now or tax-free withdrawals in retirement? Pre-tax TSP contributions can give you tax savings now, while Roth TSP contributions can give you tax-free withdrawals later on. It’s important to consider your preferences and long-term financial goals when deciding which option is right for you. Overall, both pre-tax and Roth TSP contributions can be valuable savings options for retirement. By considering your tax bracket, current financial situation, and long-term financial goals, you can make an informed decision about which option is best for you. https://inflationprotection.org/is-it-better-to-withdraw-funds-from-your-pre-tax-tsp-or-roth-tsp/?feed_id=105344&_unique_id=6480c95de8c1a #Inflation #Retirement #GoldIRA #Wealth #Investing #CertifiedFinancialPlanner #federalemployee #FederalEmployeeEarlyRetirement #FederalEmployeeFinancialIndependence #FederalEmployeeGroupLifeInsurance #FederalEmployeeHealthBenefits #FederalEmployeeRetirementPlanning #federalemployeeretirementsystem #federalfinancialplanner #fegli #FEHB #FERS #FERSSupplement #MicahShilanski #MilitaryServiceBuyBack #MinimumRetirementAge #MRA #PlanYourFederalRetirement #rothtsp #thriftsavingsplan #tsp #ThriftSavingsPlan #CertifiedFinancialPlanner #federalemployee #FederalEmployeeEarlyRetirement #FederalEmployeeFinancialIndependence #FederalEmployeeGroupLifeInsurance #FederalEmployeeHealthBenefits #FederalEmployeeRetirementPlanning #federalemployeeretirementsystem #federalfinancialplanner #fegli #FEHB #FERS #FERSSupplement #MicahShilanski #MilitaryServiceBuyBack #MinimumRetirementAge #MRA #PlanYourFederalRetirement #rothtsp #thriftsavingsplan #tsp
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