I have the TSP and I have $81,500. I’ve contributed since Jan of 2011. I have a $7,000 loan remaining from the $15k for a down payment in Mar of 2020.
I’m 38. The TSP allocated 80% instead of 36% from the Roth portion thus this lowered my percentage from 36% to 30%. I wonder if they allocated based on contributions not including vested matching contributions
We adopted two kids and had $11,000 in expenses. We had $3,300 in childcare expenses but only $550 of that is deductible. Our 11yo is incapable of self care but since my wife is a teacher, I don’t think we can deduct the $1,400 in expenses attributable to that child cannot be deducted even though this allows me to work when one of them is in childcare due to their high needs. The 13 yo is capable of self care but needs more supervision than the typical 13yo particularly because of his brother.
We get a foster care subsidy that continued post adoption till they’re 18. We thus make $106,000 a year. Our tax before any credits is $7,900 thus it looks like we will need to apply the adoption tax credit over the 2022 to 2025 tax years
The TSP doesn’t allow in service conversions. Could paying the 10% penalty and funding the $12,000 in Roth make sense as we’re in the 0% bracket? Could any of the adoption expenses not be subject to the 10% penalty? Did they have to occur in 2022 or can you take withdrawals to pay 2021 expenses?