Watch Out for this TSP Tax Trap
Just because you can do something, it doesn't mean you should. This could be the case with an indirect rollover from TSP. If you're thinking about going down that path, make sure your really understand the rules.
Just because you can do something, it doesn't mean you should. This could be the case with an indirect rollover from TSP. If you're thinking about going down that path, make sure your really understand the rules.
At some point during or after your military career you may need to get money out of a retirement account early and potentially be subject to penalty. But there are some options if you need the funds for something that isn't specifically excluded from penalty.
When deployed to a combat zone military members have different rules when it comes to contributing to TSP. You can contribute tax-free money to Roth TSP and you can contribute more than the "normal" annual limit. But how exactly do you do that?
What should you do with TSP when you retire from the military? It depends. Here are some ideas to help you decide.
Withdrawal Options used to be a significant limitation with TSP. That has all changed. New options make TSP as flexible as corporate retirement plans.
Many retired military officers want to contribute to a Roth IRA while working. The problem is that often their income is too high to contribute to a Roth. There is a work around, but if you have a Traditional IRA or if you roll TSP to an IRA, it doesn't work like you may think.
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