Drake’s Roth TSP Legislation Passes the House
Washington,
Jul 31 -
U.S. Representative Thelma Drake (R-VA) applauded the passage of a provision that was modeled after her own Roth TSP Act of 2008. The provision was attached to the Family Smoking Prevention and Tobacco Control Act (H.R. 1108), which passed the House 326-102 last night. The Roth TSP provision will allow all Thrift Savings Plan (TSP) account holders, including servicemembers and civilian federal workers, the same options that their counterparts in the private sector enjoy. The TSP is the federal government’s version of the private sector’s 401(k) retirement accounts. Currently, there is no option for TSP account holders to invest their contributions in a Roth-style account, where they would pay taxes up front and be able to withdraw contributions and any gains tax-free after reaching retirement age.
“This is about choices. Our servicemembers and civilian federal employees ought to have the same investment choices that their counterparts in the private sector enjoy,” said Drake. “The Senate should take this up as soon as possible and do the right thing for our troops and civil servants.”
House Government Reform and Oversight Committee Ranking Member Rep. Tom Davis (R-VA) thanked Drake for bringing the idea for a Roth TSP to the Committee’s attention.
“I wish to thank Rep. Drake, my fellow Virginian, for having the leadership and foresight to bring to the House the bold idea of creating Roth IRAs for the Thrift Savings Plan. This proposal will encourage savings by federal employees and other participants in TSP, which is outstanding,” said Davis.
The legislation now goes to the Senate for further consideration.
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