Roth Thrift Savings Plan (TSP) contributions coming to the National Guard and Reserves in 2013
By Mary-Dale Amison, 131st Bomb Wing Public Affairs
/ Published October 03, 2012
SAINT LOUIS, MO --
Beginning Monday, October 1, 2012, active military members of the Army, Navy and Air Force can begin making Roth Thrift Savings Plan (TSP) contributions. Active duty members can now start Roth TSP contributions by using their online myPay account or by completing a TSP-U-1 form and submitting it to their local finance office. Further instructions for completing the forms and links on Roth TSP can be found at www.dfas.mil
Marine Corps members and all civilians paid by DFAS have been able to participate in Roth TSP since June 2012.
According to Greg Long, Thrift Savings Plan's Executive Director, Roth TSP is an important new feature that will give members greater flexibility in the tax treatment of employee contributions. It will allow the member to make after-tax contributions to their TSP account that will be tax-free when withdrawn. The significance of Roth contributions is that earnings are also tax-free when withdrawn (as long as IRS requirements are met). For moreinformation, go to https://www.tsp.gov/whatsnew/messages/directorMessage.shtml
For Reservists and National Guardsmen (except those in the Marine Corps), the start dates for Roth TSP deductions have now changed to mid to late 2013. The date has changed because the interim solution for reserve component members did not meet Federal Retirement Thrift Investment Board (FRTIB) requirements.
The new timeline ensures that time is available to make systems changes and electronic deductions that meet all requirements. In the meantime, work continues to attempt to identify options that will be available more quickly and will satisfy both the law and the FRTIB requirements.