Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Connected Government
- Consolidating Mission-critical Systems
- Constituent Servicing
- The Data Privacy Imperative: Safeguarding Sensitive Data
- Eliminating the Pitfalls: Steps to Virtualization in Government
- Federal Executive Forum
- Federal Tech Talk
- Government Cloud Brokerage: Who, What, When, Where, Why?
- Government Mobility
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Mobile Device Management
- The Modern Federal Threat Landscape
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- Satellite Communications: Acquiring SATCOM in Tight Times
- Transformative Technology: Desktop Virtualization in Government
- Understanding the Intersection of Customer Service and Security in the Cloud
Shows & Panels
Mondays, 10:00 a.m.
Presenters from the National Institute of Transition Planning, the federal leader in retirement planning seminars, take your calls and emails every Monday. Each week, the show focuses on a specific area of retirement planning from financial security, taxes, federal benefits and estate planning, to life after retirement and the latest rumors. Email your questions or call the show live at 202-465-3080.
The new Roth TSP: Who should choose it?
Monday - 3/5/2012, 8:31pm EST
They discuss the plan's benefits and advantages.
The Roth TSP differs from the traditional Thrift Savings Plan in that — while you cannot deduct the amount you put into it from your taxes — you will be allowed to withdraw it tax-free once you are retired and have reached the age of eligibility.
The traditional TSP works the oposite way: you are allowed to take a tax deduction now on your contributions to the plan, but you will be taxed on it once you withdraw it in retirement.
Sullender notes that many feds think that they should decide on whether or not to invest in the Roth TSP based on what they think their tax rate will be in retirement.
Conventional wisdom has it that, if you think you will be subject to a higher tax rate when you retire, you should take your tax hit now and invest in a Roth account.
But, for most people, it is difficult to predict what your tax rate will actually be when you retire.
Sullender says that the better way to make a decision on this is to consider it from the perspective of time: the longer you have until retirement, the more advantageous it probably is for you to invest your money and watch it grow in the Roth TSP.
"Every year that passes... more of that growth becomes tax-free on withdrawal," he says.
"The Roth TSP is something people should really consider," Sullender adds. "You might have more time than you think to let that money grow tax-free."
Federal workers will have the option of the Roth TSP beginning in April of this year. More information can be found at the Thrift Savings Plan website.