Expert Q&A Archive
Will there be a Roth Thrift Savings Plan (TSP) offered?
I'd like to know if the Federal government is going to offer a Roth thrift savings plan for retirees who are over 50 working in the Federal government.
Nancy Granovsky, CFP®:
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The Thrift Savings Plan (TSP) is currently not offering a Roth 401(k) feature. TSP has produced a Fact Sheet explaining why: http://www.tsp.gov/forms/oc06-5.pdf.
TSP's "plan document" falls under Title 5 of the U.S. Code and Title 5 has not been amended to authorize Roth accounts for TSP.
The Thrift Savings Plan (TSP) is currently not offering a Roth 401(k) feature; however, because of the interest in adding a Roth 401(k) feature to the TSP, the Federal Retirement Thrift Investment Board is working with Congress on granting the TSP this flexibility. A bill-H.R. 1108-which would have included authority for the Board to add a Roth feature was introduced in the last session of Congress, but was not enacted. The Board has begun discussions with the current Congress about enactment of such authority. See Is the TSP Offering a Roth 401(k) Plan?