Thrift Savings Plan introduces new Roth option Published June 1, 2012 By Kathryn Iapichino and Annette Castro Air Force Personnel Center civilian integration directorate JOINT BASE SAN ANTONIO-RANDOLPH, Texas -- Service members and Department of Defense civilian employees eligible for the Thrift Savings Plan will soon be able to contribute to a new Roth option. This new feature allows members to contribute on an after-tax-basis to their TSP account and receive tax-free earnings when they withdraw the funds. Roth TSP elective deferral limits are the same as traditional TSP limits, which are $17,000 for regular contributions and $5, 500 for catch-up contributions. Roth TSP is not the same as a Roth IRA and in some instances contributing to the Roth TSP may make an employee ineligible to contribute to a Roth IRA due to income limitations. Additional information regarding Roth IRA income limitations may be found at www.irs.gov/retirement/participant/article/0,,id=211358,00.html. Employees may contribute to both the traditional and Roth TSP accounts as long as they do not exceed the elective deferral limit. Agency automatic and matching contributions must continue to be tax deferred and will be deposited as regular TSP contributions. Members will be able to participate in Roth TSP once DOD systems are modified to accept Roth withholdings. Currently, federal employees are scheduled to contribute in July and for military personnel, the option will be phased in over June to October. Air Force Personnel Center officials will notify service members and civilian employees when they may begin to contribute to the feature. For more information about TSP, go to www.tsp.gov For more information about other personnel issues, visit the Air Force Personnel Services website at https://gum-crm.csd.disa.mil.