The Army Times reported in a recent article that the board governing the Thrift Savings Plan is launching a new Roth option, as early as January 2012.
The Roth option, which Congress in a 2009 law ordered the Federal Retirement Thrift Investment Board to add to its investment offerings, will let participants make taxable contributions to their retirement accounts and then make tax-free withdrawals in retirement. A Roth option is expected to benefit mostly uniformed service members and select groups of federal civilian employees, such as federal judges.
“We expect that Roth will be a ‘game-changer’ in terms of interest and, eventually, participation among a large group of uniformed service members, many of whom are not currently contributing to the TSP,” executive director Greg Long wrote in a memo released this morning.
Read the full Army Times article here.