The majority of people have their retirement savings/investments in three different types of accounts. Traditional (pre-tax), Roth (after-tax), or taxable (non-retirement account/brokerage account).
And when/how you distribute money from each of these accounts will ultimately determine how much you pay in taxes over the course of your retirement.
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Dallen Haws at Haws Financial Planning
Sierra Vista, AZ
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I am a practicing financial planner, but I’m not your financial planner. Don’t take what I say as specific advice for your situation. Please consult with your own tax, legal and financial advisors.
Dallen Haws at Haws Financial Planning
Sierra Vista, AZ…(read more)
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Congratulations on 23K !
Have about $1m in standard tsp. I’m 57 y/o and still working full-time. I am trying to decide if I should convert any/all of it to a Roth account.
Love your videos but what about all the money we are losing daily by keeping money in the C fund? Yes, we want to see it grow but with the Biden admin. driving inflation out of control, will we have any money left in our accounts! I do appreciate you and your positive energy plus thankful for your video series.
Is the Met Life annuity the only way to show that your TSP is a defined monthly benefit??? IE; to show as monthly income when applying for a mortgage …..
What do you do if you are about to retire and have no Roth just a TSP account?
I am retiring when I hit 30 years service end of June 2022 at age 59.5. As a federal physician, I will have a large pension and a very large TSP which I set to 100% C fund 25 years ago. Plus I will get the FERS annuity supplement until age 62 which is nice free money. My wife will get a nice pension as a state employee (42% of her salary) with a large 401k. We have a multiyear cash reserve and a large taxable investment account outside of TSP and 401k. My strategy is to stay in the TSP (likely continuing in the C fund) since we have a lot of risk tolerance. I will hold off drawing from my TSP until 2023 since our 2022 tax bracket will still be quite high, and dip into our cash reserves if needed for 2022. Starting in 2023, I am thinking of drawing down on my (traditional) TSP at 2 or 3% (below the 4% rule) and letting my wife's 401k to continue to grow unfettered into our old age. Social Security at age 67, then RMD's at age 72. Elected to not have survivor's benefits to max out our pension payouts and no life insurance (FEGLI is a terrible deal as you get older) since we are both set pretty good and no mortgage. Since our expenses will only be 50 to 75% of our combined net pensions, we will be accumulating lots of cash in retirement. I figure converting my growth invested TSP into cash at a steady rate will give us plenty of cushion without having to deal with bonds which I don't like. Excess cash might go into the taxable investment account as a hedge against inflation.
When is the perfect time to rollover the tsp to ira? Is it when market is up or down? or it really doesn't matter? Thanks!
I stopped doing traditional tsp and only contribute to my Roth TSP. I still have 20yrs before I can retire
Visuals would be helpful
Please replace the batteries in your clock….it's the same time on every podcast – LOL
I got lucky. The "blue book" said to mail in form 70 to TSP. TSP told me they no longer did anything by mail. I got online just for my TSP. Lucky for me I don't need the TSP in retirement so have been putting it off. Found this guy and now will avoid Met Life annuity.
I have just another year before I retire. When Roth was authorized for TSP, I understood that the government would not match Roth so we had to put at least our 5% in traditional to get the match. is this still true? If not, I would like to put 100% of my contribution to Roth. Any thoughts?
I have most of my money in the traditional TSP and about 10-11,000 in the Roth TSP. My question is if I already paid taxes up front on the Roth TSP do I still have to pay taxes when I withdraw this money or what would be the best strategy?
Yes, very helpful!
Does the 6k a year max apply to Roth conversions? 6k total a year toward Roth from conversion and contributions combined??
Already retired CSRS and not planning withdrawals until forced RMDs. Is there an age restriction for when you can transfer a portion of TSP traditional into Roth?
Not sure is tsp will allow us to choose which fund to withdraw from either from the tsp Roth or tsp traditional bucket.
Love watching your videos. I retired at 59, and you have made me realize that I have done everything right with my TSP. Thank you.
Dallen, I am retired 4 yrs from my RMD. How do I do a Roth transfer if TSP doesn't presently do conversions?