The Thrift Savings Plan’s new Roth option opened up to civilian Defense Department employees today, the Air Force said. Defense civilians can now elect to contribute all or parts of their TSP savings to the Roth option on an after-tax basis. The Air Force said that elections made on or before June 30 will be effective July 1, and will be reflected on employees’ July 20 leave and earnings statement. Under the Roth option, participants pay taxes when they make contributions into the TSP. Those contributions then grow over time, and are not taxed when they are withdrawn years later.…
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Update: HR 1804 passed by a unanimous voice vote today. It will now head to the Senate, which is expected to consider the bill as part of the larger tobacco bill. Original post: The House is preparing to vote on a bill containing several provisions affecting federal employees this afternoon. HR 1804, the Federal Retirement Reform Act, would: Automatically enroll all new employees in the Thrift Savings Plan’s G Fund. The Pentagon would decide on its own whether new military service members would be automatically enrolled. Create a Roth 401(k) option in the TSP. Allow the board governing the TSP to…