ROTH 401k / TSP VS. ROTH IRA which do I contribute too?!?! What is the best one?
Have an IRA? ROTH? OR TSP (Thrift Savings Plan)? Do you care about your Retirement? And do you want to make sure your nest egg grows???
Retirement 401k for federal employment (TSP) and professionals (IRA or 401k). A 10-minute review u can put your funds or money in these ETF’s as well. A user-friendly video for all who have funds in retirement accounts.
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Nice video and your correct Roth outside TSP is they way I went and slowly bringing up TSP over the years.
Great video.
I agree with majority of the information but to new and experienced contributors of the TSP, I highly recommend maxing that one out first. The reason for this is because the Roth IRA allows you to take out your contributions penalty and tax free. This in return allows people to take out their contributions in return lowering their retirement nest egg.
Like you said in the video, make sure you are out of debt and have a good emergency fund preferably 6 months of expenses. Once you have done this max out your TSP and at the end of your federal employment you can either roll it over to your new employers 401(k) or leave it in the TSP since the expense ratio is extremely low. At the end of the day if you really want to have it in a Roth IRA you can also rollover you TSP amount from a ROTH TSP to a Roth IRA or Traditional TSP to a IRA.
People who live in a high-income-tax state are better off with a 401(k). Why? Because he or she can retire to a zero-income-tax state. By this method, state taxes can be avoided entirely.
So I'm confused about losing the match. If you are over 50 and the limit including catch up is $26,400 is it safe to divide 26400 by total pay periods (26)which is $1015.38 . Is that correct? Can I used this and be sure I will get all the matching coming to me?