LANGLEY AIR FORCE BASE, Va. — Federal civilian employees and members of the uniform services now have the option of being taxed up front rather than during their retirement years-at a possible higher rate, with a Roth Thrift Savings Plan program, starting Oct. 1, 2012.
TSP is a retirement savings plan, based on member contribution-meaning the retirement income an individual receives depends on how much the individual puts into the account during their working years, and the earnings accumulated over that time.
Members can initiate paperwork, TSP-U-1 dated May 2012, to open a Roth TSP account effective Oct. 1. Initial contributions will be collected November 2012, in accordance with current TSP rules and policies.
The first part of the member’s TSP deduction will be withheld from the member’s November midmonth pay, and the first full Roth TSP deduction amount transmitted to the TSP Agency Technical Services, Nov. 30, 2012.
For more information or questions concerning TSP, members can visit www.tsp.gov, which gives a comprehensive overview of the program, and both the Traditional and Roth options.