What Federal Employees Need To Know About Tax Diversification?

An overwhelming number of federal employees that come to me for help have most of their retirement assets in a tax-deferred account, meaning the traditional Thrift Savings Plan (TSP) and/or a traditional IRA. And while saving diligently in your TSP throughout your career is a great thing, using other account types to build diverse taxContinue reading “What Federal Employees Need To Know About Tax Diversification?”

What Happens When Federal Employees Make Ineligible Roth IRA Contributions?

Most of us can agree that Roths are great. Whether it be your Roth TSP or a Roth IRA, these accounts provide tax-free income in retirement, the opportunity to limit the taxation of your Social Security benefits, and they don’t have Required Minimum Distributions – while this last one only applies to Roth IRAs. ButContinue reading “What Happens When Federal Employees Make Ineligible Roth IRA Contributions?”

The Backdoor Roth IRA: What Federal Employees Need To Know

A common question I get from highly motivated savers is whether they can contribute to their Roth TSP and a Roth IRA each year. And while having a TSP does not prevent you from having a Roth IRA, if your Modified Adjusted Gross Income (MAGI)* is too high, you will be ineligible to contribute toContinue reading “The Backdoor Roth IRA: What Federal Employees Need To Know”