Always Do Roth | Roth vs Traditional for Military Families #156

Roth is the way to go for almost all military families. Because of the unusually low taxable income military families have (since allowances like BAH and BAS aren't taxable income),  we're going to take a hard stance on this one and show the benefits for Roth:

• You can always access your Roth contributions tax free and penalty free (can help with gap fund, emergencies, first house purchase, etc)
• All of the money you'll have in your Roth IRA or Roth TSP will be non-taxed upon withdrawal at retirement age (no big tax bombs or complicated strategies required)
• No taxable RMDs as you age
• No taxable RMDs for whomever receives the Roth account after your pass, in most cases (big win for your beneficiaries)
• No concern about future tax rate, tax laws, or tax bracket changes

Remember, almost all of the million+ you'll have in retirement accounts as you age will be GROWTH- and that's not taxed. 

In a few cases (mil-to-mil senior officers, high income families, complicated tax situations, extreme FI/RE types, etc.) traditional may be better for you. As you get more advanced and learn more about personal finance, you can make the decision. If unsure, go Roth!

*Not financial advice. Do your own research and make your own, informed decisions.

For a limited time, Spencer is offering one-on-one Military Money Mentor sessions! Get your personal military money and investing questions answered in a confidential coaching call.

Our new TSP course is live! Check out the Confident TSP Investing course at militarymoneymanual.com/tsp to learn all about the Thrift Savings Plan and strategies for growing your wealth while in the military. Use promo code "podcast24" for $50 off. Plus, for every course sold, we'll donate one course to an E-4 or below- for FREE!

If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email podcast@militarymoneymanual.com.

If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.

I also offer a 100% free course on military travel hacking and getting annual fee waived credit cards, like The Platinum Card® from American Express, the American Express® Gold Card, and the Chase Sapphire Reserve® Card in my Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.

Learn how to get your annual fees waived on premium credit cards from American Express in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.

The Platinum Card® from American Express and the American Express® Gold Card waive the annual fee for active duty military servicemembers, including Guard and Reserve on active orders over 30 days. The annual fees on all personal Amex cards are also waived for military spouses married to active duty troops.