Federal Retirement Thrift Investment Board, Washington, will include a Roth option for participants in the $308 billion Thrift Savings Plan beginning May 7.
The Roth TSP option allows participants to invest after-tax dollars in plan funds. It was authorized as part of the Thrift Savings Plan Enhancement Act of 2009, which was enacted on June 22, 2009, according to investment board spokeswoman Kim Weaver.
“The Roth TSP option offers an important new tool for federal civilian employees and uniformed service members in managing their retirement income by providing greater flexibility in the tax treatment of contributions now and in the future,” said Greg Long, executive director of the TSP, in a news release.
The plan currently has five lifecycle funds, a government securities fund, three equity funds and one fixed-income fund.