Dear Dave,

Do you think I should consider switching from my traditional TSP (Thrift Savings Plan) to a Roth TSP?

- Jeremy

Dear Jeremy,

If I've got a choice, I'm going with the Roth TSP. Now, if you're starting out really late with your saving and investing, the math might work out either way. But in most cases, when you've got several years ahead of you, a Roth TSP, or even a Roth IRA or Roth 401(k) where your money grows tax free, is a much better choice.

Remember, unless you've waited until you're in your sixties, the vast majority of the money in the account will be growth. Ten percent or less will be the money you actually put into the account. This tax-free growth is what makes the Roth TSP an excellent choice.

In other words, if you've got $1 million in your current investment, and $900,000 is growth, you'll get taxed on that portion. That would amount to around $300,000. If your money is in a Roth, there are no taxes. You just saved $300,000 out of every $1 million. Not a bad deal, is it?

- Dave

Dave Ramsey is America's trusted voice on money and business. He's authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.