Roth TSP

[CountryBoy]

Thanks Lady and II,

That answers my question. We need Congress to raise the limit you can invest in a ROTH.

CB

 

[domingo3]

`The reference to "Roth IRA" is wrong and confusing. IRA is an Individual Retirement Account. We can already have a Roth IRA. This is a program to allow qualified roth contributions to TSP. People are already confused about their options. Please correct this rather than propagating the confusion.

The Roth option for TSP is just an option for different tax treatment to your TSP contributions. It has NOTHING to do with IRAs. The contribution limit to your TSP remains the same. If this passes, you will be able to contribute some or all (your choice) of your contributions to TSP and have the income taxed now and withdrawn tax free. TSP match will still go into the "traditional" account, which is taxed on withdrawal. It's just like Roth 401k. Look it up if I'm not explaining it well enough.

Man, TSP has their work cut out for them. I thought it was a simple concept, but even folks who are interested are having a hard time with it sinking in. I can only imagine those who are not on these boards. It didn't help that the article had an erroneous title.

 

[domingo3]

What does this mean?

"May 21, 2009: Motion to proceed to consideration of measure withdrawn in Senate."

http://www.govtrack.us/congress/bill.xpd?bill=h111-1256

OK, I'm ignorant of how congress works. What does this mean? Does this mean they're going to stop thinking about it and move towards a vote, or does this mean that the bill is going to die?