My spouse and I are currently in the 22% federal tax bracket and are in the middle of that range so unlikely we will change rates anytime soon. The children are young so it’s possible in 15+ years from now we will go from 1 full time & 1 part time worker to 2 full time workers but that’s nothing we can plan for now. And, in retirement at our current pace it appears as though that too will keep us in the 22% tax bracket based on today’s rates.
With access to the TSP, it allows for extra Roth income beyond our current contributions so we were wondering if the goal should be to try and get half our retirement money saved in a Roth and half in Traditional, since we don’t know which will be better for us approximately 25-30 years from now in retirement.
We currently have $430k in traditional accounts, $265k total in Roths and $30k in a relatively new HSA that won’t be used for any medical expenses until we’re in retirement (so we’re counting that as a retirement account too).
With roughly $52k going to retirement accounts each year. currently that’s about 57% into the traditional TSP including a match ($29.5k), about 27% going to Roth ($14k), and 16% to HSA ($8.5k).
With the option to contribute to a traditional TSP and or Roth TSP, these percentages could significantly change. What would be the recommendation from the BH community about future percentage contributions to retirement in each account, and should there be a goal to have similar amounts in each account at retirement or not?
With access to the TSP, it allows for extra Roth income beyond our current contributions so we were wondering if the goal should be to try and get half our retirement money saved in a Roth and half in Traditional, since we don’t know which will be better for us approximately 25-30 years from now in retirement.
We currently have $430k in traditional accounts, $265k total in Roths and $30k in a relatively new HSA that won’t be used for any medical expenses until we’re in retirement (so we’re counting that as a retirement account too).
With roughly $52k going to retirement accounts each year. currently that’s about 57% into the traditional TSP including a match ($29.5k), about 27% going to Roth ($14k), and 16% to HSA ($8.5k).
With the option to contribute to a traditional TSP and or Roth TSP, these percentages could significantly change. What would be the recommendation from the BH community about future percentage contributions to retirement in each account, and should there be a goal to have similar amounts in each account at retirement or not?
Statistics: Posted by thethinker — Tue Dec 10, 2024 9:04 am — Replies 4 — Views 107