PERMISS

Roth Thrift Savings Plan (TSP) Option

Effective July 1, 2012, employees can make Roth contributions to their TSP account. The Roth feature gives employees greater flexibility in the tax treatment of their account. With Roth contributions, employees pay taxes now. Roth contributions and earnings are tax free upon withdrawal, if five years have passed since January 1 of the year the employees made their first Roth contribution AND employee is age 59 ½ or older or permanently disabled or deceased.


Roth TSP is not a Roth Individual Retirement Account (IRA). Unlike a Roth IRA, there are no income restrictions on contributions to the Roth TSP feature. Any participant who is eligible to contribute to the TSP can make Roth contributions.


Electing Roth contributions is not an all-or-nothing decision. Employees can contribute to both their Roth and traditional balances. The combined total of employees’ Roth and tax-deferred traditional contribution cannot exceed the Internal Revenue Code elective deferral limit. The annual limit for tax deferred contributions and catch-up contributions can be located on the Army Benefits Center-Civilian (ABC-C) website: https://www.abc.army.mil or the TSP website: https://www.tsp.gov.


Employees may make their Roth TSP election electronically via the Employee Benefits Information System (EBIS) web site at ( https://www.abc.army.mil), or Interactive Voice Response System (IVRS) automated telephone system at 1-877-276-9287 (see the Army Benefits Center-Civilian (ABC-C) telephone MENU on the ABC-C web site for OCONUS phone numbers). If employees need assistance with their election they should contact ABC-C at 1-877-276-9287. ABC-C counselors are available Monday-Friday, 6 a.m. - 6 p.m., Central time.


Additional information on Roth TSP can be located on the following websites:

Content last reviewed: 8/14/2012-VOH

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This page was last revised: 8/14/2012