TSP Roth Option

I haven't talked too much about the new Roth option in the TSP, which starts today. Rather than risk giving any inaccurate information, here are some links from the TSP.gov website, and GovExec.com:

TSP Roth Option:

- TSP Roth Press Release (tsp.gov)

- TSP Roth option to launch May 7 (GovExec)

- TSP Roth Option [video] (tsp.gov)

 

[Viva_La_Migra]

ICE HR says they aren't prepared for employees to sign up for the Roth TSP option. It's obvious the Board doesn't really want people to sign up for it. If it was really that important to them they would have pushed the agencies to get their systems prepared before the launch.

 

[seven]

I know at DOS we are allowed to sign up starting May 19.

 

[Rube]

I downloaded the TSP Election form and am ready to go as soon as USPS is ready. I'm 62 years old and plan to work at least to 67 1/2 if I'm healthy. My thinking is that taxes can only go up here in the US, but would like to hear from fellow TSPTalkers arguments pro or con on this issue.

 

[Kite_Runner]

I downloaded the TSP Election form and am ready to go as soon as USPS is ready. I'm 62 years old and plan to work at least to 67 1/2 if I'm healthy. My thinking is that taxes can only go up here in the US, but would like to hear from fellow TSPTalkers arguments pro or con on this issue.

What tax bracket are you in now? Does the current method also put you in a lower tax bracket when filing taxes? Calculate your total annual tax savings by using the pre-tax TSP option. It may be more than you will ever regain by investing in a Roth. With only 5 1/2 years left until retirement, and an unknown future health staus, how are you predicting future capital gains. You will probably be better off at this age to use the pre-tax benefit and invest the savings in some other safe investment.

 

[J-Trader]

I've checked both the EPP and TSP sites. How in the world do I start contributing money into the Roth? I can't find an link/option. Also no apparent way on TSP site to IFT the Roth account.... anyone? Thanks.

 

[tsptalk]

From this press release: https://www.tsp.gov/PDF/formspubs/Press.Release.2012-04-11.Roth.pdf

The Agency has been sharing Roth TSP planning bulletins with agency and service payroll and personnel representatives since December 2010 to provide them with the information they require to be able to program their payroll systems to accept and transmit pre-tax and after-tax money. The Agency is aware that not all agencies or services have completed the technical and programmatic modifications of their payroll systems required to implement Roth TSP. These agencies or services will require additional time to modify their payroll systems and will be able to begin participation in Roth as soon after May 5, 2012 as they are able.

So I don't think you will see an option on the TSP site, but rather through your payroll system, and they may not be set up yet. But you'd think the TSP website would show how much is in each type of account.

I haven't done it yet so I'm not sure what to expect.

 

[seven]

Yeah, it just went live on Employee Express for us so I made some changes. I'm still not 100% certain which (or if either) is completely better for me, so at the moment I'm splitting between Roth & Traditional.