Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
Moderator: Aitrus
Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
Looks like there is a chance we could be given a choice on where our TSP matching is applied; Traditional TSP or Roth TSP. There appears to be support at the moment in the House Ways and Means Committee for allowing qualified plans, as well as 403(b) and 457(b) plans, to provide participants with the option of treating matching contributions as Roth contributions.
With TSP being a qualified retirement plan, I'm keeping my fingers crossed this gets passed and TSP is included. A penny for your thoughts?
https://www.jdsupra.com/legalnews/house ... t-1387515/
With TSP being a qualified retirement plan, I'm keeping my fingers crossed this gets passed and TSP is included. A penny for your thoughts?
https://www.jdsupra.com/legalnews/house ... t-1387515/
Re: Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
I'm not sure how many people would take advantage of paying more taxes for the Roth matching. Mandating Roth contributions for Catch Up contributions is interesting. Both would increase taxable income which depending on your income could raise your income to the phase out or elimination of being able to get an outside Roth unless they raise the threshold.
I like the idea raising the SALT cap or eliminating the SALT cap for some period and increasing age for RMDs but both of these are contrary to their goal of increasing current revenue
I like the idea raising the SALT cap or eliminating the SALT cap for some period and increasing age for RMDs but both of these are contrary to their goal of increasing current revenue
Re: Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
The Securing a Strong Retirement Act just passed the House and, if passed by the Senate, will allow qualified plans (such as TSP), as well as 403(b) and 457(b) plans, to provide participants with the option of treating employer matching contributions as Roth contributions.
See the link below to HR 2954, and go to SEC. 604. OPTIONAL TREATMENT OF EMPLOYER MATCHING CONTRIBUTIONS AS ROTH CONTRIBUTIONS.
https://www.congress.gov/117/bills/hr29 ... 954rfs.pdf
The legislation also increases the catch-up contribution limit to $10,000 for those between ages 62 and 64 and all catch-up contributions starting in 2023 must be made to Roth accounts. I'm curious how folks feel about this change to "catch-up" contributions, knowing not everyone likes TSP Roth.
Here is more information on what else is included in the Act:
https://federalnewsnetwork.com/tsp/2022 ... d1b12b223z
See the link below to HR 2954, and go to SEC. 604. OPTIONAL TREATMENT OF EMPLOYER MATCHING CONTRIBUTIONS AS ROTH CONTRIBUTIONS.
https://www.congress.gov/117/bills/hr29 ... 954rfs.pdf
The legislation also increases the catch-up contribution limit to $10,000 for those between ages 62 and 64 and all catch-up contributions starting in 2023 must be made to Roth accounts. I'm curious how folks feel about this change to "catch-up" contributions, knowing not everyone likes TSP Roth.
Here is more information on what else is included in the Act:
https://federalnewsnetwork.com/tsp/2022 ... d1b12b223z
- Scarfinger
- Posts: 811
- Joined: Mon Jan 30, 2012 12:00 am
Re: Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
Not interested. I am contributing 15% to Roth and can't afford to pay more taxes.
Maybe if someone was maxing out their contributions and it was 100% Roth, this would give that person a way to put more in the Roth I guess.
I am not in that situation. But, more options could be a good thing as long as cost don't go up.
I am just an average Joe. I have no clue to what the market will do.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."
- Snapdragon
- Posts: 251
- Joined: Tue Jan 29, 2013 5:26 pm
Re: Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
I would definitely be interested in Roth matching!
Re: Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
Wish ROTH contributions reduced your annual tax liability like the regular TSP controbutions do.
Operation Iraqi Freedom Veteran
Disclaimer: The contents of this thread are known to the state of California to cause cancer. (As they always seem to know more than the rest of us)
Disclaimer: The contents of this thread are known to the state of California to cause cancer. (As they always seem to know more than the rest of us)
Re: Possible changes to allow TSP matching to go to Roth TSP account vs Traditional
Pay him now - or pay him later.
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