WCI #443: From TSP to Solo 401(k): Real-Life Retirement Planning Questions Answered

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Oct 30, 2025

Dive into the maze of retirement planning as the hosts tackle key questions for high-income professionals. Discover the pros and cons of Traditional versus Roth contributions and unravel the complexities of TSP and deferred compensation plans. Learn how to maximize your 401(k) match and navigate merging finances with a non-earning spouse's IRA. Plus, gain insights on making the most of a solo 401(k) and when refinancing student loans might be beneficial. It's a treasure trove of financial wisdom!

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ADVICE

Consider Rolling Roth TSP To Roth IRA

Roll a Roth TSP into a Roth IRA if you value simplification and broader investment choices.
Keep money in the TSP only if you specifically want the unique G fund or extremely low-cost funds and a trusted plan.

ANECDOTE

Host Kept TSP After Military Service

James Dahle kept money in the TSP after leaving the military and still has funds there for now.
He plans to possibly consolidate to simplify accounts in the future.

INSIGHT

Marginal-to-Marginal Taxes Matter

Compare marginal tax rate at contribution to marginal tax rate at withdrawal for each dollar when choosing Traditional vs Roth.
Thinking in aggregate (marginal now vs effective later) can be useful but marginal-to-marginal is the academically correct test.

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In this episode, we tackle some of the most common, and most confusing, retirement planning questions physicians and high-income professionals face. We dig into the pros and cons of Traditional vs Roth contributions, how TSP and deferred compensation plans really work, and what to know about 401(k) match true-ups. We also walk through real-life scenarios like merging finances when a spouse has no income but owns an IRA, and how to maximize annual contributions to a solo 401(k).

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The White Coat Investor has been helping doctors, dentists, and other high-income professionals with their money since 2011. Our free personal finance resource covers an array of topics including how to use your retirement accounts, getting a doctor mortgage loan, how to manage your student loans, buying physician disability and malpractice insurance, asset allocation & asset location, how to invest in real estate, and so much more. We will help you learn how to manage your finances like a pro so you can stop worrying about money and start living your best life. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!

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00:00 WCI Podcast #443 01:30 What to Do with Your TSP 07:44 Comparing Marginal vs. Effective Tax Rates 13:00 Deferred Compensation Distributions 19:37 Remaining Balance Issue w/ ETFs 24:19 401(k) True-Ups 28:40 What to Do with a Traditional IRA 32:27 Solo 401(k) Contributions