Roth TSP for Active Duty Coming in May
Members of the uniformed
services and federal civilian employees may begin contributing after-tax
dollars into the Roth Thift Savings Plan (TSP) for the first time on May
7, 2012. Contributions to the Roth TSP are made from earnings after
taxes have been paid and are not taxable when withdrawn. Account
earnings can also be withdrawn tax-free, as long as certain IRS
requirements are met.
Service members should note
that money already in a traditional TSP account cannot be converted to a
Roth TSP account. Service members should discuss investment options with
a qualified tax or financial advisor for information pertaining to their
specific tax situation. For additional information about Roth TSP go
to TSP.gov
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