Posted on Jun 10, 2020
Now You Have More Options on How to Invest Your TSP
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This is never mentioned. If you invest in TSP there is a tax benefit. Lets say you invest $10,000 per year and you are in a 20% tax bracket. Your taxable income would be reduced by $10,000. That means you would have paid $2000 in taxes but if you invest $10,000 in TSP, it is like you get the $2000 back. The so what is, the cost to you for investing $10,000 is $8,000, and $2000 of taxes is given back to you to invest to reach $10,000. I hope this makes sense.
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