Thread: Roth TSP update

Thanks for the post. I'll keep my fingers crossed.

Originally Posted by James48843

Thrift Board says Roth TSP coming in 2012.

http://www.govexec.com/story_page.cf...ref=todaysnews

We'll see.

Strange...with 2012 just a couple weeks away, I haven't heard anything more on the Roth TSP!! Anyone else heard about the implementation date?!? Or when they say 'in 2012', do they mean 12/21/12...along with the apocolypse?!

"The TSP expects to begin accepting contributions the second quarter of 2012."
https://www.tsp.gov/PDF/formspubs/oc06-5.pdf

Nice..., thanks for the TSP Roth update... Its been a long time coming....

SilverSurfer posted an update link:
http://www.tsptalk.com/mb/showthread...261#post345261

May 7th is the day TSP will begin accepting Roth contributions.

I wonder what agencies will be set up to send money to TSP Roth.

"It said that not all agencies have completed the needed changes to their payroll systems to make Roth investing available as of May 7"



TSP sets launch of Roth-style investing - The Federal Eye - The Washington Post

I am very curious about something. Who plans on opening a Roth and what is your rationale for doing it? Please, the more feedback the better.

I'll pay some into Roth because: a) My income is relatively low, and I have not yet maxed my position's maximum grade. I have a low federal income tax rate at the moment after the various deductions/credits I receive; b) Tax diversification for the future; c) I believe taxes will, in the long run, increase.

Originally Posted by jkenjohnson

I am very curious about something. Who plans on opening a Roth and what is your rationale for doing it? Please, the more feedback the better.

I'm in the 15% marginal tax rate bracket. I feel pretty confident that taxes will be higher in 30 years when I'm retired. I've already got money in TSP and pension that will be taxed. Roth TSP gives me the opportunity to put more than $5k a year in an account that I can withdraw from tax-free in the future. As stated above, this provides tax diversification.

I am opening a roth IRA right now but do not plan to contribute to the roth TSP.
I do not see my income level in retirement being higher then it is now.
So the plan is to take what I can from the TSP to keep me from paying taxes, then supplement the rest with the roth IRA.

I am betting that the USMC is ready..