Browsing: Roth IRA

Q: I am 39 years old, an officer of 14 years in the Marine Corps, married (she’s 37) with 4 beautiful children, have 1 car payment worth 25,000k, don’t own a house or mortgage, and have spent the better part of the last 6 years paying off my student loans which were above $69k when we started. We are, thankfully, now in a position to begin investments especially considering we have a solid emergency savings established and very little consumer debt (the car is it and NO credit card debt…we’ve been working hard). I am considering starting the ROTH TSP…

Q. I am a federal employee contributing the maximum to TSP (Traditional). I currently own a Traditional IRA and a Roth IRA, and my wife owns a Roth IRA. As our combined income will soon exceed the threshold for the standard approach to contribute to our Roths, I am investigating strategies to utilize the back door approach to making Roth contributions. The fact I still have a traditional IRA is the issue — it is comprised of $12,000 of after-tax contributions, and $48,000 of pretax earning thus far. If I use the back door approach, I would have a large…

Q. I am 36 years old and make about $125,000 a year and file as single head of household. I have a $300,000 in a traditional TSP and about $50,000 in the Roth TSP. However, starting this year I will be making more than the $117,000 limit to invest in my private Roth IRA. I like the idea of Roth because I live in Nevada, which has no state income tax, and federally I am in the 25 percent tax bracket. In retirement I plan to leave Nevada to go to a state that has a 6 percent state income tax, while…

Q. After 27 years of diligent saving and investing, I’ve accumulated well over $1 million in my regular TSP account. I also have over $70,000 in my Roth TSP account, and that portion is growing quickly. By the time I retire, I expect my Roth TSP balance will account for around 10 percent of my entire TSP account balance. After I retire at the end of 2017 (at age 62) and before I begin collecting Social Security (at age 66 or 70), I want to convert a good portion of my regular TSP account to Roth assets. The problem is,…

Q. I have a TSP account. A portion of it is tax-exempt combat pay. When I was in combat, TSP didn’t offer Roth IRAs and, therefore, the money was combined into one account. However, the statement reflects how much of the pay is tax-exempt. I’m considering rolling over my accounts to have more options. TSP told me that they would have to send me a check for the tax-exempt portion and that they can roll the rest into a IRA. If they send me the tax-exempt money, can I deposit it into a Roth?