Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
Shows & Panels
How to plan for the Roth TSP option
Friday - 2/10/2012, 11:32am EST
The Federal Retirement Thrift Investment Board plans to make it happen sometime in the next few months.
Ed Zurndorfer, registered employee benefit consultant, told The Federal Drive with Tom Temin the Roth TSP is different from a Roth IRA. The Roth IRA has income limits. In 2011, you would not quality if you are single making more than $107,000 or jointly filing with a spouse and making more than $179,000.
The Roth TSP has no income limitations, however.
The Roth option is "going to help younger employees who right now are probably in a lower tax bracket and eventually will be in a higher tax bracket, especially down the line ... when they're retiring and they're going to be really happy come that time that they're not having to pay tax on withdrawals from their Roth TSP account," Zurndorfer said.
The traditional TSP will still be appealing for people who want their tax break immediately.
"Employees are going to have to sit down and evaluate, Where am I better off? Getting my tax break now or in the future?" he said.