WEBVTT

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welcome to yet another edition of the

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money minutes presented by U . S . Army

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Central . I'm Staff Sergeant David

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Graves , and today , now this is a big

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one . Today we're talking about the

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thrift savings plan . Specifically the

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difference in the two options when

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contributing to your TSP as always , 60

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on the clock . Let's get to work . So

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you have two options when contributing

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to your TSP , traditional and Roth .

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Let's take a look at traditional first .

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Now , with this option , you pay no

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taxes on the money you save when it

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goes into your account . This reduces

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your taxable income , but you will be

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subject to taxes on savings and any

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additional earnings when you take that

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money out later . Now , with Roth , you

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pay taxes on that money before it goes

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into your TSP account . That means

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paying taxes out of your paycheck up

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front . However , that means since you

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already pay taxes on that money , it

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will be tax free when you take it out

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of your count down the road . Now this

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definitely impacts those down range .

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And here's how your combat pay is not

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taxable . Now , with Roth , that combat

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pay goes in tax free and comes out tax

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free . However , any money you put into

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the traditional plan will be taxed when

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you take it out down the road ,

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including anything you contributed

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while deployed , which could mean a

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savings of thousands of dollars in

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taxes in the long run . Now , I know

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we're only scratching the surface and

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it's already a lot to digest . And I

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know I'm already over on my time . So

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you really within Which one do I use ?

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I mean , that depends on your butt .

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And how much do I need to put in each

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month ? Well , you have to look at your

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individual . Gonna do both . Okay .

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Guys , guys . Sorry . Not everybody at

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once . Actually . Can you give me a

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minute ? I'm kind of in the middle of

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something . I'm sorry . My bad . OK ,

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I'm sure you have a lot of questions

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regarding the TSP , and I know it could

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get a little complicated . What's best

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for the guy next to you might not be

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necessarily what's best for you . Every

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situation is a little bit different .

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What's important is to make sure you're

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informed . Here's the website on As

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always , you can also check out these

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sites for helpful financial tips and

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tricks . And that is your money .

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Minute