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Roth TSP Matching

jonnyp500

Member
Messages
7
Is there anyway to get the agency to put *matching* contributions in the Roth TSP vs Traditional? My current election all goes to Roth but government is paying into Traditional.
 
Solution
Is there anyway to get the agency to put *matching* contributions in the Roth TSP vs Traditional? My current election all goes to Roth but government is paying into Traditional.
IRS rules require you to pay regular income tax on employer contributions when they are withdrawn. Roth contributions are not (typically) taxed on withdrawal so employers can't contribute.

Roobert

Active Member
Messages
71
Is there anyway to get the agency to put *matching* contributions in the Roth TSP vs Traditional? My current election all goes to Roth but government is paying into Traditional.
IRS rules require you to pay regular income tax on employer contributions when they are withdrawn. Roth contributions are not (typically) taxed on withdrawal so employers can't contribute.
 
Solution

TheD.A.T.

Lurker
Messages
12
Like the others said you can’t. Honestly helps your liquidity situation out tho. You cant withdraw Roth tsp prior to 58.5 years old without a tax penalty. So if you needed some income to help bridge the gap between 56 and 58.5 you could withdraw your traditional that the agency matched without a penalty and just pay income tax.
 

BigEggplant

Trusted Contributor
Messages
164
Like the others said you can’t. Honestly helps your liquidity situation out tho. You cant withdraw Roth tsp prior to 58.5 years old without a tax penalty. So if you needed some income to help bridge the gap between 56 and 58.5 you could withdraw your traditional that the agency matched without a penalty and just pay income tax.
There are several ways around that penalty though. Anyone at a 10 or above should be maxing Roth TSP. Pension and SS supplement will give most people another 20% boost on that money.
 

TheD.A.T.

Lurker
Messages
12
There are several ways around that penalty though. Anyone at a 10 or above should be maxing Roth TSP. Pension and SS supplement will give most people another 20% boost on that money.
Good to know and you’re right, I looked into it more and contributions withdrawals are always penalty free. It’s just Roth tsp earnings that are subject to the 10% penalty prior to age 59.5
 
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