DoD civilian employees now have Roth option

Tuesday - 6/26/2012, 10:01am EDT

Defense Department employees have had to wait longer than other feds but this week they're getting their chance.

Civilian workers can now open a Roth retirement account in their Thrift Savings Plans.

Other agencies rolled out the Roth option in May, after it had been in the works for two years. But technical problems prevented DoD from launching it immediately. Rather, the department is phasing in military personnel.

The last batch of employees should be able to open Roth accounts in October. The new option allows workers to contribute after-tax dollars to their retirement, which means they can withdraw it without paying taxes.

This story is part of Federal News Radio's daily DoD Report brought to you by United Health Military and Veterans Services. For more defense news, click here.