Hi everyone-
I did some searching around, but could not find the answers I need in regards to TSP. I'd like to start contributing more to TSP, eventually maxing out every year my TSP plan. I have a few questions, and have not been able to find the answers in the TSP booklet. Also would like your advice on how to invest in the TSP.
1) When contributions are made in a combat zone, and are labeled as "exempt" - is that the same as having contributed to a Roth IRA? Is that money forever not taxable?
2) When the TSP booklet talks about withdrawing upon retirement - that is military or federal service retirement - correct? Want to make sure that the money that I'm putting in now will be available upon military retirement, not in my 60's.
3) I currently have 100% of the money in the C fund. I know this needs to change. I currently have 12 years active service. Should I break this down into the C, S and I funds or go ahead and do a Lifecycle fund? My inclination is to go with the Lifecycle 2030 fund, because the 2020 fund seems to0 conservative for me - too much in fixed income, but don't want to be foolish either. I don't like moving in and out of funds a lot, so I think that a Lifecycle fund will be for me.
4) When I pull from the C fund and invest in other funds, will the gains be taxed? I don't think so, but want to be sure -
Thanks for your time.
Michelle
I did some searching around, but could not find the answers I need in regards to TSP. I'd like to start contributing more to TSP, eventually maxing out every year my TSP plan. I have a few questions, and have not been able to find the answers in the TSP booklet. Also would like your advice on how to invest in the TSP.
1) When contributions are made in a combat zone, and are labeled as "exempt" - is that the same as having contributed to a Roth IRA? Is that money forever not taxable?
2) When the TSP booklet talks about withdrawing upon retirement - that is military or federal service retirement - correct? Want to make sure that the money that I'm putting in now will be available upon military retirement, not in my 60's.
3) I currently have 100% of the money in the C fund. I know this needs to change. I currently have 12 years active service. Should I break this down into the C, S and I funds or go ahead and do a Lifecycle fund? My inclination is to go with the Lifecycle 2030 fund, because the 2020 fund seems to0 conservative for me - too much in fixed income, but don't want to be foolish either. I don't like moving in and out of funds a lot, so I think that a Lifecycle fund will be for me.
4) When I pull from the C fund and invest in other funds, will the gains be taxed? I don't think so, but want to be sure -
Thanks for your time.
Michelle