- Career Central
- Career Resource Links
- HR Contact Information
- HR FAQs
- Coast Guard Family Campaign
- Assistant Commandant's Biography (CG-1)
- Flag Voice
- Mission Support
- Associations: Coast Guard and Military
- Media: Coast Guard, Military and Government-related
Security Levels
Roth Thrift Savings Plan
FLAG VOICE 349
The Thrift Savings Plan has introduced a new way to save for your
retirement: Roth TSP.
The Roth benefit allows participants to contribute on an after tax basis to
their TSP accounts. Roth TSP earnings are tax free when the funds are
withdrawn, as long as participants are at least age 59 and a half and the
withdrawals are made at least five years after the beginning of the year in
which their first Roth contribution were made.
This new feature is available to civilian employees on 14 May 2012 (pay
period 10) and to military personnel (active duty and Selected Reserve) in
May to take effect on 1 June 2012.
Roth contributions are made in addition to or in lieu of traditional
contributions. The combination of Roth and traditional contributions are
subject to the same total Internal Revenue Service 2012 elective deferral
limit of $17,000.
In addition, participants who turn 50 years of age or older in 2012 may
elect to make Roth catch up contributions in addition to or in lieu of
traditional catch up contributions. All catch up contributions are
contributed from basic pay. The total contribution must not exceed the 2012
catch up limit of 5,500 dollars.
Civilian participants may designate any whole percentage or whole dollar
amount of basic pay as Roth contributions. Agency automatic and matching
contributions available to FERS employees are always treated as traditional
contributions. Their earnings are tax deferred. Roth contributions are added
to traditional contributions when determining the percentage of pay
contributed for purposes of the agency matching contribution formula.
Military members may only elect to designate whole percentages, not whole
dollar amounts. These contributions can also be made in addition to, or in
lieu of, an election to make traditional contributions.
Money already in participants TSP accounts when they begin making Roth
contributions remains part of the traditional balance. Participants cannot
convert those funds to Roth. Use of the Roth TSP instead of the traditional
TSP will have an effect on your taxable earnings and should be considered as
you make your financial plans.
Additional Roth TSP contribution election information will be provided in a
future ALCOAST.
Regards,
Curtis B. Odom
Curtis B. Odom
Acting Assistant Commandant for Human Resources
Issue date: 5/17/12
Adobe Acrobat Reader (PDF)