Tag Archives for " TSP "

“Should I Invest In The Thrift Savings Plan Or In Taxable Accounts?”

A reader writes: Nords, I’ve been tracking you across a few blogs and appreciate the military perspective. I just bought your book as well so I am looking forward to flipping through that. Anyway I am trying to set mine and my wife’s savings to combine the 40% you mention here with the pension for […]

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“Can I Transfer My Roth IRA To My Roth TSP?”

    Here’s a great reader question on getting the most out of your Thrift Savings Plan: I frequently read your website and find your advice very helpful, and I am looking to make some money moves that I’m not sure are possible. I have a Roth IRA with a lot of money in it, […]

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Financial Advice To Start Your Military Career

Last summer there were many graduation ceremonies, and millions of new employees joined the workforce. In the military version of this milestone, thousands of new O-1s received their commissions and tens of thousands of other new recruits started their basic training. It’s a very busy time. These new servicemembers are getting an incredible education (some […]

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How (And Why) To Transfer Your TSP To An IRA

  After years of military retirement, my spouse just transferred her Thrift Savings Plan to a traditional IRA. That’s the first step in converting the TSP funds into a Roth IRA. It’s taken us nearly three decades to get to this point. We started contributing to our traditional IRAs in 1986. (I was a little […]

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Contribution Limits of the Thrift Savings Plan + 401(k) + IRA = ?!?

A reader asks: I’m in the Air Force Reserve and I also have a full-time job with a 401(k) and employer match benefits. I believe the max I can contribute between my 401k, employer match, AND the TSP that is tax deductible is $18,000. Beyond that number any contributions from myself, my employer, or via […]

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Early Withdrawals From Your TSP and IRA After The Military

Readers frequently ask how they should handle their cash flow after they reach financial independence. The biggest challenge for military veterans is setting aside enough assets for annual living expenses after separation or retirement. There’s usually investment income (interest, dividends, capital gains distributions), rental property income, maybe some pension income, and perhaps a little employment […]

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How Should I Invest During Retirement?

. A reader writes: “I would like your opinion on an investment strategy. I’m sure you cringe at anyone who asks for investment advice, however, this question is very big picture. I have five years before I retire and I am considering discontinuing my investing in our Roth IRAs and my Thrift Savings Plan and […]

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Maximizing TSP contributions from a combat zone

A reader writes: “The goal: We are trying to reduce my taxable income while increasing my Roth contributions. I am in a combat zone through August, so my pay has been tax free, but will soon change. We have converted my spouse’s traditional IRA to a Roth IRA and expect a tax bill. The question: […]

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Combat zone contributions to the Thrift Savings Plan

    A reader asks: “When does it make sense to make tax-exempt TSP contributions (contributions while in a combat zone)? I already max out my Roth IRA ($5,000) and hit my traditional & Roth TSP contribution limit ($17,000), but I can also contribute an additional $33,000 of tax-exempt combat pay to the TSP. Essentially, […]

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Reader questions about retiring on a military enlisted pension

    A reader asks some very good questions: “I came across your book and am interested in purchasing it, but I have a few questions. I’m an E-6. I’m married, with no children, and currently only have a retirement savings account via TSP. Is is realistic to assume that someone in my situation can […]

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