I am a GS-13 govt employee with about 15-20 years left in the service. I will likely reach at least step 10 GS-14 so my pay has the potential to go up by 60% by the time I retire.
Currently I contribute 15% of my pre-tax pay to the TSP. How should I decide if it makes sense to convert all future contributions to roth? I know that for most people the tax bracket will be lower in retirement. But then again roth contributions will grow tax free.
I also inquired with my agency's HR to see if they will convert the agency contributions to roth, but they declined. It was my impression that the Secure 2.0 act allows you to do that but TSP has confirmed that all agency contributions can only go to pre-tax.
Currently I contribute 15% of my pre-tax pay to the TSP. How should I decide if it makes sense to convert all future contributions to roth? I know that for most people the tax bracket will be lower in retirement. But then again roth contributions will grow tax free.
I also inquired with my agency's HR to see if they will convert the agency contributions to roth, but they declined. It was my impression that the Secure 2.0 act allows you to do that but TSP has confirmed that all agency contributions can only go to pre-tax.
Statistics: Posted by syngameon — Thu Feb 08, 2024 7:36 pm — Replies 4 — Views 271