I currently maxed out my ROTH IRA.
I don't need my drill check money.
Currently my tsp contribution is set to 5 percent for the ROTH TSP.
Would it be wise to put (near, if not all) 100 percent of my drill check into the ROTH TSP?
I am currently 20 years old and I am debating weather or not I want to stay in for a second contract. I would like to know what happens to my TSP once I ETS. Will it still be accessible? And will I be able to with draw money when I am 59.5 years old as with the ROTH IRA?
ROTH TSP + ROTH IRA – Questions
byu/AnonymousEbe_new inMilitaryFinance
Posted by AnonymousEbe_new
2 Comments
It’s never a bad idea to contribute to retirement. You should be contributing 15-20% of your gross income throughout life. Whatever that number is for you.
Sure, if you don’t need the money put it into your TSP. It’ll only let you go to 60%-ish due to taxes. Yes, you can still login to your TSP account and make changes to your investments. Yes, it will be accessible in retirement.
After you leave the military, you can transfer the TSP funds to another 401k or to a (Roth) IRA at any time. Or leave it until retirement. So yes, you should max out contributions to the extent you can afford it. However, TSP and your civilian job’s 401k count towards the same annual maximum.