Population: New or Prospective Non-Represented
Roth IRA
A Tax Advantage…
You can make Roth contributions to the Thrift or Savings Plan. The earnings you accumulate by making Roth contributions can provide you with tax-free income in retirement. Roth contributions are made on an after-tax basis, which means they are deducted from your paycheck after federal, state, and local income taxes have been withheld. So the Roth does not reduce your current taxes the way before-tax contributions do. However, if you are at least age 59½ when you withdraw your savings, and you’ve been making Roth contributions for at least five years, your Roth contributions and the earnings on those contributions are tax free.
For more information on Roth contributions, read through the questions and answers.
Log on to Your Benefits Resources™ to begin making Roth contributions or to use the modeling tool to compare Roth and before-tax contributions. From the 401(k) Savings page click on Change Contributions.