P 051821Z OCT 12 FM DFAS CLEVELAND OH TO AIG 4730 AIG 4676 AIG 4678 SUBJ/INTERIM PROCESSING PROCEDURES FOR ROTH THRIFT SAVINGS PLAN (TSP) CATCH-UP CONTRIBUTIONS// MILITARY PAY ADVISORY 53/12// REF/A/DOC/TSP ENHANCEMENT ACT OF 2009/JUNE 22, 2009// REF/B/WEBSITE/WWW.TSP.GOV// NARR/REF A IS THE TSP ENHANCEMENT ACT AUTHORIZING THE TSP ROTH FEATURE. REF B IS THE OFFICIAL TSP WEBSITE.// POC/BARBARA BLOCK/CODE JFLQ/TEL:216-204-4308// RMKS/1. THIS MILITARY PAY ADVISORY PROVIDEs INTERIM PROCESSING PROCEDURES ON STARTING, CHANGING, AND STOPPING ROTH TSP CATCH-UP, WHICH WAS AUTHORIZED BY REF A. 2. UNLIKE TRADITIONAL TSP CATCH-UP, ROTH TSP CATCH-UP CONTRIBUTIONS CAN BE MADE EITHER FROM TAXABLE BASIC PAY OR BASIC PAY SUBJECT TO COMBAT ZONE TAX EXCLUSION. 3. ALL ROTH TSP CATCH-UP CONTRIBUTIONS AND TRADITIONAL TSP CATCH-UP CONTRIBUTIONS COUNT AGAINST THE TSP CATCH-UP CONTRIBUTION LIMIT. FOR TAX YEAR 2012 THAT LIMIT IS $5500.00. 4. THE SAME RULES APPLY TO BOTH ROTH TSP CATCH-UP CONTRIBUTIONS AND TRADITIONAL TSP CATCH-UP CONTRIBUTIONS. THERE IS ONE NEW FUNCTION: PAYROLL OFFICES MAY REDESIGNATE ROTH TSP CATCH-UP CONTRIBUTIONS TO TRADITIONAL TSP CATCH-UP CONTRIBUTIONS AND TRADITIONAL TSP CATCH-UP CONTRIBUTIONS TO ROTH TSP CATCH-UP CONTRIBUTIONS. THIS WILL ONLY BE ALLOWED DUE TO SERVICE ERROR. MEMBERS CANNOT REQUEST TO HAVE A CONTRIBUTION REDESIGNATED FOR ANY OTHER REASON. 5. THE FIRST DEDUCTION WILL BE TAKEN 15 NOVEMBER 2012. THE FIRST CONTRIBUTIONS WILL BE TRANSMITTED TO THE MEMBERS TSP ACCOUNT ON 30 NOVEMBER 2012. 6. THE ROTH TSP CATCH-UP WORKAROUND IS TO PROCESS A 'DS' (MISCELLANEOUS DEBT) TRANSACTION. FIELD ACTIVITIES SHOULD PROCESS THE APPROPRIATE DS TRANSACTIONS, SUCH AS STARTS, CHANGES, AND STOPS IMMEDIATELY ON RECEIPT. THE FOLLOWING PROCEDURES SHOULD BE USED WHEN SUBMITTING THE MISCELLANEOUS DEBT START (DS01), CHANGE (DS04), AND STOP (DS02) TRANSACTIONS: A. DS01 (START MISCELLANEOUS DEBT) TRANSACTION: 1. FIRST SCREEN YR-MO-START: 1211 OR LATER APPROP-CODE-DEPT: 17 AMT-SPEC-INDEBT: MUST BE THE TOTAL AMOUNT ELECTED FOR CURRENT CALENDAR YEAR CANNOT EXCEED $5500 FOR CALENDAR YEAR 2012. AMT-SPEC-DEDTN-CR-MO: MONTHLY AMOUNT TO BE DEDUCTED (FOUND ON THE TSP-U-1-C FORM BLOCK 7) FY-OR-CAL-YR: 12 (CURRENT CALENDAR YEAR) INDEBT-TYPE: H (USED FOR TSP CATCH-UP AND ROTH TSP CATCH-UP ONLY) CO-CODE: LEAVE BLANK INDEBT-RSN-SUSP: MUST BE ZERO 2. SECOND SCREEN: APPROP-CODE: 17 F38827007 (ROTH CATCH-UP) OBJ.CL: ZERO FILLED BCN-FAN: ZERO FILLED RANK-RATE-SUB-A LOT: ZERO FILLED AAA: 380100 TYPE: ZERO FILLED PROJECT-PROP-ACCT: ZERO FILLED COST-CODE: ZERO FILLED SDN: MUST BE BLANK B. DS04 (CHANGE MISCELLANEOUS DEBT) TRANSACTION: YR-MO-START: 1211 OR LATER AMT-SPEC-INDBT: TOTAL AMOUNT OF INDEBTEDNESS AND IT MUST MATCH THE SPECIFIC INDEBTEDNESS ON THE MMPA AMT-SPEC-DEDTN-CRNT-MO: NEW MONTHLY DEDUCTION AMOUNT FY-OR-CAL-YR: CALENDAR YEAR THE INDEBTEDNESS OCCURRED INDBT-TYPE: MUST MATCH INDEBTEDNESS TYPE ON THE MMPA CO-CODE-(NEW): LEAVE BLANK CO-CODE-(OLD): LEAVE BLANK C. DS02 (STOP MISCELLANEOUS DEBT) TRANSACTION: YR-MO-STOP: YYMM DEDUCTION STOPS (MUST BE CURRENT OR FIRST PRIOR PROCESSING MONTH) AMT-SPEC-INDBT: TOTAL AMOUNT OF INDEBTEDNESS (MUST MATCH THE SPECIFIC INDEBTEDNESS ON THE MMPA) FY-OR-CAL-YR: CALENDAR YEAR THE INDEBTEDNESS OCCURRED (MUST MATCH THE MMPA) INDBT-TYPE: MUST MATCH THE INDEBTEDNESS TYPE ON THE MMPA INDBT-AMT-FRGVN: MUST BE EQUAL TO THE BALANCE DUE IF STOP DATE IS CURRENT PROCESSING MONTH (MUST BE EQUAL TO BALANCE DUE PLUS CURRENT MONTH DEDUCTION IF STOP IS THE FIRST PRIOR PROCESSING MONTH) 7. THE ROTH TSP CATCH-UP CONTRIBUTION TOTALS WILL NOT BE REFLECTED ON THE LEAVE AND EARNING STATEMENT (LES). HOWEVER THE ROTH TSP CATCH-UP CONTRIBUTION AMOUNTS WILL BE REPORTED ON THE W2 INCOME STATEMENT. 8. THE ABOVE PROCEDURES WILL REMAIN IN EFFECT UNTIL ROTH TSP CATCH-UP CONTRIBUTIONS ARE AUTOMATED IN DEFENSE JOINT MILITARY PAY SYSTEM (DJMS). 9. REQUEST WIDEST DISSEMINATION OF THIS MESSAGE.//