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 Contributions to the Roth TSP are made from earnings after taxes have been paid and are not taxable when withdrawn. Account earnings can also be withdrawn tax-free, as long as certain IRS requirements are met.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