TSP or Roth IRA

[shibabigk]

DH is eligible to contribute to the TSP, and since at this point we can't contribute a whole lot yet, I was wondering which one would be better.
Does one have a significant advantage over the other? Should we split the contributions and do both?

Thanks!

[maat55]

I'm not knowledgable on TSP's but they seem to mimic an 401k/annuity plan. Depending on the match which I have only found to be about 1% I think I would go with the Roth.

Here is an explantion.

TSP: Civilian Features chapter 1, The Thrift Savings Plan; 2009 Jul 01

[MonkeyMama]

Agreed.

You would go with TSP for match. I don't know much about TSPs, but that they are like 401ks.

If you are young and in a low tax bracket, the ROTH can be a pretty sweet deal.

I'd probably consider doing TSP up to match, and then funding ROTHs. Then you can go back to TSP if you want to fund more.

Another advantage of ROTHs is that you have full control over the investment - you can invest it anywhere.

It's not bad to diversify into both kinds of retirement vehicles.

[ktmarvels]

If you are in the military there is not TSP match, so you'd be better off contributing to a Roth, particularly if you are in a low tax bracket.

[shibabigk]

No match and there is no way we can max out either one right now.
You guys confirmed what I was thinking, seems like a Roth is the better choice right now.

Thanks!

[TheColonel]

I called a family member that used to work exclusively with military and government employees for life insurance and investments. He said you must be in the military if there is no match and that the Roth IRA is the way to go if you don't need the deduction to make a difference in your taxable income. He said to fund the Roth IRA first and once that is maxed out (permitting), then fund a TSP.