Tips, advice, and the latest news from the savings world.
by Miriam Darden Settles, CFP®
Federal Retirement Thrift Investment Board
Roth: What’s it all about?
Simply put, Roth is all about options when it comes to the tax treatment of your TSP savings. If you decide to make a Roth TSP contribution, the amount that you contribute comes out of your pay after-tax rather than before-tax as it does now. That means that when you take withdrawals from your Roth balance, your Roth contributions come out tax-free because you’ve already paid the tax on them. Not only that, but the earnings on those contributions are also tax-free provided you meet two basic Internal Revenue Service (IRS) requirements.*
By Lila Quintiliani, AFC ®
Military Saves Assistant Coordinator
Just like clockwork they would arrive each year – the little certificates announcing that my aunt had purchased another savings bond for my birthday. A few weeks and a thank you note later (Auntie A was always a stickler for the niceties), and a crisp Series EE savings bond would arrive in the mail. When my daughters were born a few years ago, the tradition continued.