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Benefits April 12, 2012
TSP to Accept Roth Contributions
April 12, 2012 (PLANSPONSOR.com) - The Federal Retirement Thrift Investment Board announced that beginning May 7, 2012, the Thrift Savings Plan (TSP) will accept Roth contributions.
Reported by Tara Cantore
With the addition of the Roth TSP option, participants can now choose to invest either pre-tax or after-tax dollars, or both, in any of the TSP funds, up to the Internal Revenue Code limits.
The Roth option for the federal retirement plan was approved by Congress in 2009 (see “House Passes Federal Retirement Reform Bill”). The TSP published rules for implementation of the Roth in February (see “TSP Releases Draft Rules for Roth Option”).
According to Greg Long, executive director of TSP, “The Roth TSP option offers an important new tool for Federal civilian employees and uniformed service members in managing their retirement income by providing greater flexibility in the tax treatment of contributions now and in the future.”