Roth TSP vs. Roth IRA: This is a choice that federal government employees and U.S. military professionals must make when considering a retirement savings plan. The real question is, do you go with the Thrift Savings Plan (TSP) account offered in the government plan or, like any civilian, fund a Roth Individual Retirement Account (Roth IRA) on your own?
Recent changes to the federal retirement program make this an easy choice. In short, your government employer is now matching part of your retirement savings at a more generous level than most private companies are offering these days.
The Roth Thrift Savings Plan (TSP) is part of the Federal Employees Retirement System (FERS). This is a retirement program that provides benefits from three sources: a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP).
Like people who work for private employers, FERS employees are required to help fund the cost of the Basic Benefit and Social Security …