To my understanding the difference is in a traditional tsp you’re investing pre tax dollars but you’re taxed on withdrawals and earnings. In a Roth tsp you’re investing post tax dollars but youre not taxed on withdrawals or earnings
I am curious which people are using and why.
Traditional TSP or Roth TSP?
byu/ProperPoem5476 inMilitaryFinance
Posted by ProperPoem5476
1 Comment
We use Roth because our current federal tax rate is negative. That won’t be true once we don’t have minor children, I’m working, and/or my husband is getting retirement benefits.