WEBVTT

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beginning in october changes are being

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made to the thrift savings plan for

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service members , Lieutenant Gerald

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Henderson , Diego Garcia's command .

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Financial specialist explains

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traditional TSP is where your money is

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taken out and put in the TsB before

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taxes . So it lowers your taxable

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income . And with the Roth DSP has

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taken out after the taxes , your

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taxable income is going to be like if

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you won't even invest in and the TSP .

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But the big benefit here is that with a

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traditional TSP , you take that money

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out down the road , it's taxed . So we

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you're talking about higher tax

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brackets in the future . If you're

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taking out 1,200,000 million two

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million . You know , you could have a

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lot of money for investigating TSP uh

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you could be hit with a very fairly

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sizable tax book , but with the raw TSP ,

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you won't be here with the tax bill

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because you've already been taxed on

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that . So all of that compounded

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earnings just stays in your bank

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account , sailors at Diego Garcia

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received training on the thrift savings

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plan and the new Roth option at

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indoctrination upon arrival to the

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island , Biggest advantage for the

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sailors is avoiding a large tax bill in

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the future . So if they've invested a

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lot of money in the raw TSP and say

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that grows about $2 million or $1.5

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million in the future when the 59 a

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half and they want to withdraw , they

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won't be taxed on it at all , whereas

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with traditional TSP , they would be

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taxed over that if you have a very low

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tax bracket analysis that you have a

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wife or a husband and two kids and your

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taxable income is actually below zero .

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You actually get money back then you

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know , having the rock TSP and

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investing in . That is a great way for

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you to avoid the tax man legally .

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There are a number of options available

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for each sailor to find out more

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information about the TSP . They can

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either go talk to their command

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financial specialists or they can go

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visit the website , www . TSP . Dark .

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Semen Andrew Lavigne , Diego Garcia .