Will military start Roth TSP in April?

[domingo3]

I've been watching and waiting as the Roth TSP implementation gets pushed back, and just had a thought today. Just because the TSB board allows Roth contributions, does DFAS/military have an intention to immediately re-align their systems to allow active duty service members to do so?
I can do IFT and set my allocations through TSP.gov, but to set my contributions, I use mypay.dfas.mil. I haven't seen anything on DFAS about Roth TSP. Is it possible that it could be several more months before they make it possible for me to opt into Roth contributions? Who might know? My local pay office certainly knows nothing and won't really care until after April rolls around.

[RealMoneyIssues]

I've been watching and waiting as the Roth TSP implementation gets pushed back, and just had a thought today. Just because the TSB board allows Roth contributions, does DFAS/military have an intention to immediately re-align their systems to allow active duty service members to do so?
I can do IFT and set my allocations through TSP.gov, but to set my contributions, I use mypay.dfas.mil. I haven't seen anything on DFAS about Roth TSP. Is it possible that it could be several more months before they make it possible for me to opt into Roth contributions? Who might know? My local pay office certainly knows nothing and won't really care until after April rolls around.

You can try calling DFAS to see if they know...

[domingo3]

Thanks for the tip. The customer service representative I talked to was not aware that TSP is going to be offering a Roth option. He offered me the phone number to TSP, which really doesn't help. I submitted the question electronically through "Ask Military Pay", which might make escalating it a little easier. I'll post back if I get a response.

[Frixxxx]

I've been watching and waiting as the Roth TSP implementation gets pushed back, and just had a thought today. Just because the TSB board allows Roth contributions, does DFAS/military have an intention to immediately re-align their systems to allow active duty service members to do so?
I can do IFT and set my allocations through TSP.gov, but to set my contributions, I use mypay.dfas.mil. I haven't seen anything on DFAS about Roth TSP. Is it possible that it could be several more months before they make it possible for me to opt into Roth contributions? Who might know? My local pay office certainly knows nothing and won't really care until after April rolls around. Military (I'm a reservist) When you are referring to your pay, DFAS sets up allotments, control your taxes (state and federal), pay your life insurance, and send money to TSP based on your inputs and law. After that they're done. TSP handles your wishes by asking you what you want to do with the money. TSP 401(g) or TSP Roth (when available). DFAS has no insight to HOW your money is handled after you tell them to send it there.
For Civilians (I'm one of them too), I tell EBIS (our civilian enterprise HR system) my wishes on the same thing. Then I go into TSP and tell them what to do with the money when it gets there.

Hope this helps!

[domingo3]

Frixxxx,
Thanks, but I think DFAS will have to know if it's going to Roth or traditional, because they will issue me my W-2, and they handle my monthly tax withholding. They need to have the right accounting to know if it's a deductible contribution or not. Correct me if I'm wrong, but I see a potential roadblock to me contributing to the Roth TSP if DFAS doesn't have a mechanism in place for Roth contributions.

Thanks

[Frixxxx]

I see what you are saying now, and yes, you are correct. It will make a difference on how they account for the monies going to TSP. So my guess will be that when you give money to TSP it will have to show what it went for.

TSP 401(g) - tax deferred
TSP (ROTH) - allotment (just like any other financial institution)

So DFAS will have to have a way to show how you elected to contribute.

Personally, I use commercial Roth's because of the control of my money and the ability to roll to another Roth if I want.

Management costs and diversity of investment will determine whether or not I will use TSP for a Roth option.

Good call though, I'll be watching with you on the "How to" portion of this.

[domingo3]

"Your inquiry cannot be answered by the Ask Military Pay representatives. Therefore, your inquiry was emailed to the appropriate office within the organization.

Thank you,
Ask Military Pay Customer Service"

Well, that lowers my confidence a bit.

[domingo3]

" We currently have no information available regarding the timeframe
or manner in which TSP Roth will be implemented for the Military service
members."

Sounds like I need to scale back my expectations...

[PessOptimist]

" We currently have no information available regarding the timeframe
or manner in which TSP Roth will be implemented for the Military service
members."

Sounds like I need to scale back my expectations...

I read this at lunch but could not reply (not supposed to log in to "social networks" at work).

It reminded me of something I was told while on active duty. It went something like this:

"You are an integral part of the <insert branch>. Rest assured the <insert branch> has it's best interests in mind. You should salute smartly and carry on."

DFAS will get it figured out eventually but it will likely take some time for the people answering ask military pay e-mails to get guidance.

Incidentally, DFAS started handling my civil service pay a few years back and I was skeptical about their ability to handle my military retirement pay and civil service pay without getting it screwed up somehow. So far, so good. Two separate accounts.

Raise those expectations! You are a part of it and it is looking out for itself.

[domingo3]

I was once told "We'll get your pay fixed in two to three weeks." Seven months later, I got $9000 in back pay. - Yes, I was getting underpaid almost $1500 a month. Salute smartly and carry on, and having faith doesn't always work. Respectfully asking the question makes sure the higher ups know that somebody cares.

Perhaps there is a plan in place, and they are one of the agencies that have taken up TSP on coordinating for testing their systems. Perhaps they just haven't trained their customer service reps on it. Let's just say I'll be very pleasantly surprised if I can contribute part of my April pay to Roth TSP.

[PessOptimist]

I hear ya domingo. I wrote that somewhat facetiously. I had my share of pay screw ups in my 24 years. PCS from a JUMPS (early centralized pay system) base to a non jumps base with threat of no pay and article 15 action for losing my pay records, gross overpayment for supposed back BAQ/BAS and subsequent promise of taking it back in monthly payments (took it all back in two or three paydays so NPD for me). I could go on but it all worked out in the end. This issue will get worked out too. Definitely didn't mean you shouldn't ask questions and keep track of things.

I hope you are pleasantly surprised. It may not happen in April for any of us.

BTW, I won't mention how long I was in before I even made $1500 a month.:D

Thank You for serving.

[James48843]

BTW, I won't mention how long I was in before I even made $1500 a month.:D

Thank You for serving.


Ha- no kidding!

I can remember my first full year in the military, I was happy that I was an E3 making $695.10 a month! I was RICH then!
http://www.dfas.mil/dms/dfas/militarymembers/pdf/MilPayTable1984.pdf

Yep - those were the days- I even made enough to put away a little each month in a MUTUAL FUND!
What glory that was!

Yes- I am sure it will just take a little time before DFAS figures out what they will have to do to ready themselves for the Roth option. I'd give it a 50/50 whether they will be ready in April, or whether it will take another month or two for them to figure it all out. I'd bet it won't be long, though. Especially now that you've asked the question, it will go to the right people to figure out what they are going to have to do....

[domingo3]

Well, in a way, the answer to my original question is "yes". Those in the the Army will begin to be able to contribute to Roth TSP in April .... 2014!!!!! I find this truly unbelievable. Here is the message I got:

"ROTH TSP will not be available to Army service members until April 2014. At present the Federal Retirement Thrift Investment Board, OSD, DFAS and the Services are still coordinating the action. "

I wrote back to ask if it was a typo. The sender confirmed 2014, and said something about hoping to get it done sooner.

Personally, I had scaled back my TSP contributions to only 1% so that when Roth came online, I could put almost all of my money into that. I guess I have to rethink my plan.