Should You Pay Your Mortgage Off With Your TSP

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The information contained in this video should not be used in any actual transaction without the advice and guidance of a tax or financial professional who is familiar with all the relevant facts. The information contained here is general in nature and is not intended as legal, tax or investment advice. Furthermore, the information contained herein may not be applicable to or suitable for the individuals’ specific circumstances or needs and may require consideration of other matters. RBI is not a broker-dealer, investment advisory firm, insurance company, or agency and does not provide investment or insurance-related advice or recommendations. Brandon Christy, President of RBI, is also president of Christy Capital Management, Inc. (CCM), a registered investment advisor.

[@benitawigfall8025]

Can you show your math on how you came to the $36,986 for 27% of $100k?

[@ChristyCapitalManagement]

When you need a net of $100,000 when paying 27% in taxes, the math is 1.00 - .27= .73 Then take $100,000 divided by .73 = $136,986. To check your math, take the gross distribution of $136,986 times your tax rate of 27% and you get a tax amount of $36,986 leaving a net distribution of $100,000. If you need more information or you want to speak with us, go to Christycapital.com and click talk to an advisor.

[@richardcerritelli9657]

Hi i need 110,000 thousand how much do I have to take out to cover taxes . I am in Connecticut. Just give me an estimate amount.

[@kckuc310]

Never, I did it without doing it

[@ChristyCapitalManagement]

Awesome!

[@1Mayflwr]

Paying mortgage off early could save a lot of amortization interest though, couldn’t it?

[@ChristyCapitalManagement]

It really depends on your personal situation.

[@jeffcokenour3459]

If your TSP is roth, you should not be taxed on your distribution correct?

[@ChristyCapitalManagement]

This is true IF you have met the following two criteria: 1.)you must be age 59 and 1/2 years or older and 2.) your ROTH account must have been open and funded for at least 5 years.

[@tomatodo8334]

Great video. If your mortgage is less than 50k and you are less than 59 1/2 yrs old, would a TSP loan make sense to pay off the mortgage loan?

[@kckuc310]

I would never do a loan from the tsp

[@ChristyCapitalManagement]

We would recommend speaking to a trusted financial planner as the answer could vary depending on your full financial situation and retirement plans.