To invest $104 having aftertax cash, you still need to earn $139 to blow right back the borrowed funds and you can focus
step one. You have made $100 outside of the pretax Tsp. You do not spend fees when this arrives. dos. 3. The fresh Teaspoon count however develops so you're able to $104, that is nevertheless $78 when the withdrawn having fees reduced.
So, the reality that its an effective pretax Teaspoon since the source for the latest mortgage that you pay having aftertax dollars isn't really relevant. Investing $100 outside of the account constantly will set you back $139 (or some amount higher than $100); the pretax equilibrium is $78 after withdrawal (otherwise a point lower than this new stated harmony).
1. Discover $100 towards Roth Tsp, you'd getting $139 at some point. If you had a comparable amount of money within pretax Tsp, you only provides $75 regarding the Roth Tsp.Read more
