Feb 26, 2013

TSP: Traditional or Roth

"...On October 1, service members became eligible to take advantage of a Roth version of the Thrift Savings Plan, where money is deducted from taxed income, but becomes tax-free money when it is withdrawn.

According to TSP's external affairs director, Kim Weaver, there's a big difference between the two options.

"The biggest difference is that the traditional TSP is pre-taxed money, so it reduces the amount of your income in that year," she said. "So let's say your salary is..."

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