Thursday, June 7, 2012

Roth TSP: A New Way to Save

The Roth Thrift Savings Plan (TSP) feature has been made available for Postal Service career employees.

Roth TSP allows participants to make after-tax contributions to a TSP account that are tax-free when withdrawn. All earnings on these accounts also are tax-free when withdrawn — as long as IRS requirements are met.

Employees may set up TSP Roth contributions through the PostalEASE Employee Self Service site or phone the Employee Service Line toll-free on 877-477-3273, option 1.

For more information on the Roth TSP, refer to the TSP website, which includes a video and information comparing Roth and traditional TSP contributions.

Employees should speak with a qualified tax or financial advisor to determine how investing in a Roth TSP would affect their specific tax situations.

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