What is Roth?
In 2012 the TSP introduced a new savings vehicle to Federal employees called the Roth TSP. It’s important to understand that a Roth, like a traditional TSP or IRA, is not itself an investment, but rather a tax “wrapper” (or “bucket”) to hold different investments of your choosing. To learn more about the investments found in these buckets watch the video below.
Roth Types Explained
Federal employees typically have two kinds of Roth accounts available: the Roth TSP and the Roth IRA. Each share the same basic qualities that define a Roth account, but they follow different sets of rules that offer different sets of advantages and disadvantages. Let’s begin by learning the basics of Roth TSP and Roth IRA.
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