Air Force

October 5, 2012

Roth contributions to open to all active duty troops

By Terri Moon Cronk
American Forces Press Service

WASHINGTON, D.C. — Active duty members of the Army, Navy and Air Force are now able to contribute to the Roth Thrift Savings Plan as part of their investment planning, Defense Financing and Accounting Service officials said, Sept. 28.
The after-tax contributions will be electronically deducted from service members’ pay accounts.

Active duty service members also can start their Roth TSP contributions now through their online MyPay accounts, which offer the fastest, easiest and most secure method to manage both Roth and traditional Thrift Savings Plan contributions. The second option open to service members is to submit a TSP-U-1 form to their finance office.

Active-duty Marines, Guardsmen, reservists and civilians paid by DFAS were able to begin making contributions to the program in June, officials said.

Additionally, the other branches of the National Guard and Reserve will be able to make Roth TSP contributions by mid- to late 2013.

The timeline difference between active-duty and other service members resulted from an interim solution for reserve component members, which did not meet Federal Retirement Thrift Investment Board requirements, according to DFAS.

While work continues for options that will be available more quickly and satisfy the law and Federal Retirement Thrift Investment Board’s requirements at the same time, the new schedule will allow time to make systems changes and electronic deductions that meet all requirements. DFAS officials said.

To begin making Roth TSP contributions, service members should determine how much of their pay is eligible. A Roth TSP worksheet can help make the calculations.

Military members are required to contribute an amount equaling 1 percent of their eligible pay to begin TSP contributions. For those who are not participating in traditional TSP investments, the initial Roth TSP election must meet this 1 percent requirement. The IRS maximum contribution to Roth TSP is $17,000 per year, DFAS officials said.

Military members can use pay earned in combat zones and are excluded from federal taxes when contributing to Roth TSP.




All of this week's top headlines to your email every Friday.


 
 

 
U.S. Air Force photo/Megan Crusher

Air Force JROTC cadets graduate Summer Leadership School

U.S. Air Force photo/Megan Crusher Air Force JROTC cadets from Rancho Verde High School in Moreno Valley and Arlington High School in Riverside, graduate from a two week Summer Leadership School, held at March Air Reserve Base,...
 
 
U.S. Air Force photo/Senior Airman Russell S. McMillan

Airmen attend second annual Norton-March reunion

U.S. Air Force photo/Senior Airman Russell S. McMillan Senior Master Sgt. Paul Mitt, detachment chief, 163rd Reconnaissance Wing, answers questions about the MQ-9 Reaper at March Air Reserve Base on June 20. Members of the Nort...
 
 
Halle-Berry

Halle Berry Connects With the U.S. Military

Halle Berry stars in the Science-Fiction show “Extant,” which just began its second season. Finding out someone values and appreciates what you do can keep you floating at cloud level for weeks, especially when the someone ...
 

 
Courtesy photo

Charles “Chuck” Flood, Satellite Services, Inc., passed away unexpectedly, June 17, 2015

Courtesy photo Chuck Flood: March 16, 1963 – June 17, 2015 Flood had been employed by SSI since February, 2005. He had been the fire truck mechanic, responsible for over 15 fire fighting vehicles at Edwards Air Force Base and...
 
 
Watchara Phomicinda — LA Daily News staff  photographer

March honor guard gives final honors to America’s veterans

(Final in a two-part series on honor guard, reprinted with permission) Watchara Phomicinda — LA Daily News staff photographer Brittarose Morgan, 77, right, wife of the late Airman First Class Roland Morgan with daughter, Kym ...
 
 
HBI-photo

Fitness at a glance – It’s all about timing!

Ever notice how your anxiety tends to increase around your fitness assessment time (FA)? It is amazing that in 20 minutes (or less) your FA is over, but your anxiety level has cumulatively increased over the 30-90 days (or more...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>