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Roth TSP now open to active-duty servicemembers
Tuesday - 10/2/2012, 9:18am EDT
This story was updated at 5:17 p.m. to reflect changes in the DoD release regarding who could begin making Roth TSP contributions in June.
As of Monday, active-duty members of the Army, Navy and Air Force can now participate in the Roth Thrift Savings Plan option.
Servicemembers can sign up for the after-tax contributions through their online MyPay accounts or by submitting a TSP-U-1 form to their finance office, according to a American Forces Press Office release.
Active-duty and Reserve Marines and civilian employees paid by the Defense Finance and Accounting Service were able to start making Roth TSP contributions in June. Other branches of the National Guard and Reserves will be able to participate mid-to-late 2013, according to the release.
"The timeline difference between active-duty and other service members resulted from an interim solution for reserve component members, which didn't meet Federal Retirement Thrift Investment Board requirements, according to DFAS. While work continues for options that will be available more quickly and satisfy the law and FRTIB requirements at the same time, the new schedule will allow time to make systems changes and electronic deductions that meet all requirements, DFAS officials said," according to the release.
The annual limit for Roth contributions is $17,000.