The amount of money in the Thrift Saving Plan’s Roth accounts crossed the $1 billion mark for the first time last month, according to figures released Monday.
“We’re enjoying very good pick-up,” Renee Wilder, director of enterprise planning at the Federal Retirement Thrift Investment Board, said at the panel’s monthly meeting. The number of federal civilian employees with Roth balances totaled almost 171,400, while about 141,500 military service members have also gone with the Roth option. Overall, however, Roth account holders remain a small fraction of the TSP’s enrollment of some 4.6 million participants, who jointly hold more than $392 billion in assets.
Under the Roth option launched in May 2012, participants can invest after-tax earnings into TSP funds and then incur no future tax liability for growth in those accounts. Under the standard TSP plan, before-tax dollars are invested, with earnings taxed when they are withdrawn.