Ok...I do not do ROTH's...but still an $11k advantage depending on the assumptions. If you are in a lower bracket now and expect to be in a higher bracket later, the ROTH could end up a bit better.
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Government employee thread! (Being a government employee is sweet) (2 Viewers)
- Thread starter flapgreen
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belljr
Footballguy
You also have to keep in mind that Roth 401k distributions don't count towards AGI so won't count towards taxing of your SS benefits
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Good to know. I did not get the appeal of doing a ROTH, but if SS benefits are a significant source of income, they do make sense to be part of the mix.
With all these rules, especially social security, there are all kinds of guesses one needs to make to make optimal decisions. The best advise is to start early and heavy so it has time to grow.
That's the rub, there's no way to know what things are going to look like 20-40 years from now. Because of that, it's commonly recommended to have a mix of both (traditional and Roth) as that will give you a lot more flexibility later on. Outside of extreme examples, the "best" choice will only be known in hindsight.
Based on the info. he's given, and the fact that the match is automatically put in a traditional, I'd put more money in the Roth myself assuming he doesn't need the tax deduction now. Can't really go wrong with either though.
belljr
Footballguy
No. This will be very basic. First I will assume you are talking traditional and Roth 401k and not Roth Ira, as Roth ira has a couple different rules. I mean everything is going to depend on many factors. Factor in your pension, and how much social security you are also receiving. But based on whatever tax rates are now vs at your retirement maybe you pull more from the Roth since it's tax free. And less out of traditional, or maybe you do the opposite. It really depends on a lot of factors By doing both you will "diversify" so you have different avenues to pull money. It might not matter much based on income, savings etc.
Unfortunately it's not a straight answer as different options fit different people
* I have limited knowledge of deep retirement complexities. My friend is my go to for any actual questions. I'm trying to relay what I've learned maybe incorrectly
For me it made sense because I had a large sum already in traditional. So when I flipped I went heavier on the Roth.
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flapgreen
Footballguy
Ah OK. It has to do with the tax bracket you fall in when you withdraw at retirement etc. I get what you mean.
DaVinci
FairTaxguy
If you have a mix of traditional and Roth TSP contributions, the disbursals come from both accounts proportionally so you can't really control which pot it comes from. The theoretical benefit of doing both is that you have taken partial advantage of whichever one would have been most advantageous.
We're kind of mixing TSP and other retirement (non-TSP) accounts here, but if you don't have the option to choose which TSP "bucket" to withdraw from, you can always rollover your TSP account into a rollover IRA, which would then give you that flexibility. So in years where you have little other income/lower tax rate you can withdraw more from your traditional (tax-deferred accounts) because the tax hit is small, and in years with more income/higher tax rate you can withdraw more from the Roth accounts because it's tax free.
DaVinci
FairTaxguy
Whether you go Roth or traditional, you need to read up on the different funds within the TSP that you can invest in. By default, your contributions are assigned to the G fund, which is invested in bonds. The G fund is guaranteed to never lose money, but it doesn't have a very good rate of return and isn't a good long-term investment. I'm invested 50/50 in the C and S funds, which are both stock funds. As I get closer to retirement, I'll start shifting money into one of the less-volatile funds. They also offer "Lifestyle" funds geared toward your targeted retirement date. These funds consist of a mix of their other funds and the TSP will shift the holdings toward the more conservative funds as it gets closer to the target end date so that you don't have to worry about doing it yourself.
flapgreen
Footballguy
belljr
Footballguy
Bcbs is what is used majority here, or the postal workers they just allowed everyone. I think I said it before, I'm on my wife's plan hers is dirt cheap in comparison
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dgreen
Footballguy
My memory ain’t what it used to be so I don’t remember if I posted this in here yet. I believe you’re moving close to this place:
https://youtu.be/CxyqHkOA00s
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-OZ-
Footballguy
Start early for sure, but the Roth option is great unless you're making big money (unlikely early in the federal government)
The TSP now allows you to choose which you're drawing from. That change is a huge benefit imo.
Your post helps show the problems when people refer to the Roth IRA as a "Roth". You have a TSP / 401k, and you can have an IRA. within each of those you have Roth and traditional options. (Not all 401k's do, but the TSP does). It gets confusing when people talk about a 401k or a Roth. It's like saying you have cake or a vanilla, when you have vanilla cake, chocolate cake, vanilla ice cream and chocolate ice cream.
No longer accurate. The TSP modernization act, among other things, allows you to decide to withdraw from roth or traditional. It does not, however, allow you to choose which fund to withdraw. Hopefully that will change in a few years.
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BassNBrew
Footballguy
BassNBrew
Footballguy
belljr
Footballguy
Riffraff
Footballguy
belljr
Footballguy
Charlie Steiner
Footballguy
Riffraff
Footballguy
1,316 days (and counting) since our Go-Live.
Genesis may be the death of my current job.
Charlie Steiner
Footballguy
We (National Capital Region) were supposed to have it the start of last fiscal year but we seemed locked in to 3rd quarter FY 23 at this point.
Fun fact for you: the brains behind supporting Genesis are the same ones in charge of the current EMR. I think they're still trying to live down 'Aw Hell, Let's Try Again'.
Another fun fact for you: the two things I say most often at work are: 1: goat rodeo; and 2: You can't spell diarrhea without DHA.
flapgreen
Footballguy
Foosball God
Foos
belljr
Footballguy
-OZ-
Footballguy
In the era of WFH, a non working CAC could be awesome.
But then, you're probationary so it's probably best to be somewhat useful.
flapgreen
Footballguy
They told me upfront it would be a few weeks so no one cares. I just wish I could start practicing on Genesis, so I'll be ready to use it.
flapgreen
Footballguy
It's all good. I'm getting paid. I just want to start doing something. Days go by so slow and I can only follow other clinicians for so long. Got through the third day of orientation today, so at least that part is over.
-OZ-
Footballguy
Crazy. I had a computer the first day, was on the system within a week. But then, I'd be even more completely useless without a computer.
belljr
Footballguy
flapgreen
Footballguy
Was looking back through the thread and came across this. Ended up taking about 6 months between the time I applied for the job I got and starting it. 9 since I first started looking.
I could see the VA being a solid option for me eventually. There's a lot more of them and would give me more flexibility with location.
for me that would be probably be bad as typically in that situation today would be the "holiday" which I was already in the office when it officially came down. Not sure how they would handle that for something like this.
belljr
Footballguy
Oh I know, it's been a hot mess here as I say 50% of people I work with tomorrow is their rdo and we still haven't received official word yet
-OZ-
Footballguy
Whoever is in charge of the CAC office needs to be fired. Easily the worst office in the government and that is saying a lot. I knew my card was expiring 6 months ago and made an appointment 5 months before so. Each time the office was down and had to be rescheduled. My card expired yesterday. After the 6th cancellation I went to the only place in the metro that took walk-ins. After two days (starting at 0630) I finally got mine.flapgreen said:
must be a ####ty deers office, CAC’s should be good day 1. 
CGRdrJoe
Footballguy
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