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@julian246 I think this is the optimal plan. It does require some planning though as you say.

@abidingpatri0t I think your explanation here makes more sense

@abidingpatri0t How’d you settle on $170k for the line between Roth and Traditional TSP? That seems pretty high to me. Big difference between the 12% and 22% rate, I doubt many will be paying >22% tax rate in retirement.

@bevm Absolutely! But officers can pass the threshold pretty quickly. Especially if spouses are earning income. The other thing to consider is that if you have a brokerage account, any headspace you can generate below the 22% bracket will also save you money on capital gains taxes.

@bevm It took me longer than it should have to realize this. I think a big contributor is almost everyone I know in the military promotes Roth because not all of our compensation is taxed. But I just don’t see any reason to pay a 22% rate.