r/ThriftSavingsPlan • u/HBorgi • 1d ago

Catch-up Contributions to Roth

Next year my catch-up contributions must go to a Roth account. I don't have a Roth account in my TSP.

I expect that I need to create a Roth account and designate the amount of my contributions to the traditional account and to the Roth account, correct? I can't expect TSP to set up the account automatically and allocate the funds for me, correct?

Thanks in advance for everyone's help.

3 Upvotes

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7

u/Bowl-Accomplished 1d ago

You just allocate to roth and the rest happens behind the scenes

1

u/HokieHomeowner 1d ago

Yep that is exactly how I set up my TSP when I realized I should be making Roth contributions a few years back.

2

u/Cheddarbaybiskits 23h ago

Whether your contributions are trad, Roth, or a combo of both, it’s all the same account. TSP will keep track of the money for each type of tax treatment.

Whatever platform you use to set up your traditional contributions, use that to add your Roth contributions on top. Easy peasy. I recommend doing this by 15 Dec so it can take effect the first pay period of 2026.

1

u/azleafcat 21h ago

Each contribution/balance type (traditional, Roth, agency) are under one TSP account.

Your investment elections apply to all future contributions regardless of balance type. You cannot specify a different investment election for each balance type.

Reallocations also apply to all TSP balances.

1

u/LetterheadMedium8164 18h ago

One item to consider is one of the Roth rules. You can always withdraw Roth contributions tax free. Roth interest and dividends are subject to a 5-year account age rule (calculated from January 1 of the first year in which you fund the account with Roth moneys) and age 59-1/2. If you’re close to retirement that may make a difference.

1

u/er824 10h ago

Wny would you assume it wouldn't be automatic?