Beginning June 1, service members who participate in the Thrift Savings Plan (TSP) could select a Roth option, which allows them to allocate after-tax contributions to their plan. When withdrawn, the Roth-option contributions will be tax-free. Typically, TSP contributions are made before taxes; as such, they are subject to income tax when withdrawn. Service members also have the option of selecting a percentage of their TSP contributions under the Roth option, and leaving the remaining portion under the traditional configuration. More information is available on the Defense Finance and Accounting Service Web site, www.dfas.mil, or the Thrift Savings Plan Web site, at www.tsp.gov.
