When the Roth TSP Is Actually the Wrong Move for Federal Employees

Is the Roth TSP always the best choice for federal employees?
Not necessarily.

While Roth accounts offer powerful tax-free growth, there are several situations where traditional TSP contributions may actually be the smarter strategy.

In this video, we break down when Roth TSP can work against you and why many federal employees benefit from tax diversification instead of going all-in on Roth.

You'll learn how tax brackets, state taxes, early retirement rules, charitable giving strategies, and the Roth five-year rule can impact your retirement strategy.

If you're planning for retirement under FERS or CSRS, understanding when Roth helps and when it hurts can make a significant difference in your long-term tax picture.

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Chapters
0:00 Introduction
0:24 Traditional vs Roth TSP explained
2:20 The Roth five-year rule
3:44 Rule of 55 and Roth withdrawals
4:36 Qualified Charitable Distributions (QCDs)
5:54 When traditional TSP may win
8:09 Early retirement considerations
9:19 Rolling Roth TSP into Roth IRA
10:01 High earners and Roth TSP
10:37 State taxes and retirement strategy
11:30 Roth vs traditional rule of thumb
12:53 Situations where Roth is clearly wrong
13:54 Other tax-free investment options
15:17 Decision framework for federal employees
16:00 Final thoughts

Видео When the Roth TSP Is Actually the Wrong Move for Federal Employees канала SWAN Capital