I'm trying to figure out if I should go traditional or Roth for my TSP for next year. Roth TSP became available a couple years ago and I'm taking a close look at it, but it's a bit of a guessing game as to whether I should lower my taxable income now or if I should be worried about my taxable income down the road.
Married with one child (age 4)
Projected taxable income for 2015: $88,000
If I retire from the Army at 20 years (I'm about to hit 12) I will have a pension of $52k/year in current dollars.
If I continue with traditional TSP my working age tax rate will stay in the 15% bracket, and without it I go up to 25%. I think I'll move up to the 25% bracket for the last few years of my career due to raises even after TSP deductions. If I did the math right and FIRE right after I retire from the Army, I'll start out with a taxable income lower than what I'm making now, but at age 60 I can start withdrawing TSP and I'll jump to equal to what I'm making now. Does it make sense to continue with traditional contributions and keep myself in the 15% bracket or bite that bullet now to lower my tax rate later?