TSP Ideas Advance to a Point

Also as part of the tobacco policy bill, the House approved language that would have made several important changes in the TSP’s design. The measure would have required the TSP to create a "Roth" option in which money would go in after-tax but come out with its earnings tax-free, and to automatically enroll all new hirees with a required contribution, presumably 3 percent, unless they opted out. It also would have given the TSP the discretion to add new investment options and to make a lifecycle fund the default fund for investors who do not choose investment funds. Concerns were raised about the various provisions even as they progressed, but those concerns were left for another day when the host bill stalled.