To expend $104 that have aftertax cash, you nonetheless still need to make $139 to pay right back the borrowed funds and you can appeal

To expend $104 that have aftertax cash, you nonetheless still need to make $139 to pay right back the borrowed funds and you can appeal

1. You have made $100 out of the pretax Tsp. You never pay taxes when this comes out. 2. step 3. The fresh Teaspoon number nevertheless increases in order to $104, that is still $78 in the event the withdrawn which have taxes reduced.

So, the fact that it is a beneficial pretax Tsp while the source for the mortgage you pay which have aftertax cash actually relevant. Paying $100 outside of the membership constantly can cost you $139 (or some extent higher than $100); this new pretax balance is $78 shortly after withdrawal (or some amount less than this new mentioned equilibrium).

step one. Discover $100 with the Roth Teaspoon, you had having $139 will ultimately. If you had an equivalent amount of money at the pretax Teaspoon, you only keeps $75 regarding Roth Tsp.

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