Dividend tax

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Q. I have a considerable amount in my Thrift Savings Plan account. I was reading Fedsmith, and it says there is a real possibility of taxes on dividends (when I retire and draw TSP) raise from 15 percent to 43.4 percent. I cannot roll over my basic TSP to my Roth portion of TSP. Do you think it advantageous for me to pull out my TSP and put it in a Roth IRA on the outside?

A. Your TSP withdrawals will be taxed as ordinary income and not capital gains, so this is not an issue to be concerned about when it comes to your TSP account.

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