P 101843Z OCT 12
FM DFAS CLEVELAND OH
TO AIG 4730
AIG 4676
AIG 4678

SUBJ/INTERIM PROCESSING FOR ROTH THRIFT SAVINGS PLAN (TSP)
CONTRIBUTIONS ELECTED FROM ONE TIME ENTITLEMENTS//
MILITARY PAY ADVISORY 54/12//
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 (MPA) PROVIDES INTERIM
PROCEDURES TO FINANCE OFFICES FOR MEMBER’S WHO ELECT TO
MAKE A ONE-TIME ROTH TSP CONTRIBUTION FROM A ONE-TIME
ENTITLEMENT AS AUTHORIZED BY REF A AND EXPLAINED ON REF B.
2. THE MEMBER MUST NOTIFY THEIR FINANCE OFFICE THAT THEY WILL
BE RECEIVING AN INITIAL ONE-TIME ENTITLEMENT OR AN INSTALLMENT
FOR A ONE-TIME ENTITLEMENT AND SUBMIT THE ROTH TSP ELECTION
FORM, TSP-U-1, FOR THE AMOUNT OF THE ENTITLEMENT THEY WISH TO
CONTRIBUTE TO ROTH TSP. THE MEMBER MUST ELECT A WHOLE
DOLLAR RATE VICE A PERCENTAGE. THE MEMBER WILL PROVIDE THE
EFFECTIVE DATE OF THE ONE-TIME ENTITLEMENT.  IF THE ONLY CHANGE
THE MEMBER IS MAKING IS TO THE ROTH ONE-TIME ENTITLEMENT ELECTION
THEY MAY WRITE "ROTH ONE-TIME ELECTION" ONLY IN SECTION II OF THE
FORM. THE FORM MUST BE RECEIVED BY THE FINANCE OFFICE THE MONTH
PRIOR TO THE MONTH OF THE ONE-TIME ENTITLEMENT EFFECTIVE DATE.
3. THE FIRST DEDUCTION FOR A ONE-TIME ROTH TSP CONTRIBUTION
CAN BE NO EARLIER THAN 1 NOVEMBER 2012.
4. THE SEQUENCE OF EVENTS FOR PROCESSING THE MEMBERS ONE-TIME
ROTH ELECTION IS:
A. MEMBER SUBMITS TSP-U-1 FORM REQUESTING A ROTH CONTRIBUTION
FROM A ONE-TIME ENTITLEMENT.
B. FINANCE OFFICE WILL VERIFY THAT THE MEMBER WILL RECEIVE
SUFFICIENT POST-TAX OR TAX EXEMPT PAY TO QUALIFY TO MAKE THE
DESIGNATED CONTRIBUTION. THE FINANCE OFFICE IS ALSO RESPONSIBLE
FOR VERIFYING THAT THE MEMBER HAS AT LEAST ONE PERCENT BASE PAY
ELECTED FOR TRADITIONAL OR A WHOLE DOLLAR AMOUNT THAT EQUALS ONE
PERCENT FOR ROTH TSP.
C. FINANCE OFFICE WILL VERIFY THE EFFECTIVE DATE OF THE ONE-TIME
ENTITLEMENT.
D. FINANCE OFFICE WILL SUBMIT ANY OTHER CHANGES TO TRADITIONAL
OR ROTH ELECTION ON THE TSP-U-1 FORM.
E. FINANCE OFFICE VERIFICATION MUST BE PROVIDED TO DFAS-CL
MILITARY PAY OPERATIONS (MPO). THE FORM SHOULD BE RECEIVED
BY DFAS-CL MPO BY THE 15TH OF THE MONTH PRECEDING THE MONTH
OF THE DATE OF THE ONE-TIME ENTITLEMENT. AT A MINIMUM, THE FORM
SHOULD BE RECEIVED BY DFAS-CL MPO FIFTEEN DAYS PRIOR TO THE
ONE-TIME EFFECTIVE DATE TO ENSURE THERE IS ADEQUATE TIME TO
PROCESS THE REQUEST BEFORE THE ONE-TIME ENTITLEMENT IS PAID.
HOWEVER, THE FORM MUST BE ACCEPTED BY THE SERVICE THROUGH THE
END OF THE MONTH PRIOR TO THE ONE-TIME ENTITLEMENT EFFECTIVE DATE.
F. FINANCE OFFICE WILL OPEN A DWOWS CASE USING CLERK CODE TSP.
THE TSP-U-1 FORM MUST BE UPLOADED WITH THE REQUEST. IF THE FINANCE
OFFICE DOES NOT HAVE ACCESS TO DWOWS THEN THEY CAN SCAN AND EMAIL
THE REQUEST ALONG WITH THE TSP-U-1 FORM TO CL-MILITARY-TSP@DFAS.MIL.
5. TIMELINESS OF RECEIPT OF THE REQUEST IS REQUIRED IN ORDER FOR
DFAS-CL MPO TO REQUEST A STOP OF THE ONE-TIME PAYMENT SO THAT
THE TRANSACTIONS MAY BE DONE TO MANUALLY DEDUCT THE ONE-TIME ROTH
TSP CONTRIBUTION. THE MEMBER WILL BE PAID ANY REMAINING AMOUNT THAT
WAS NOT CONTRIBUTED TO ROTH TSP IN THEIR NORMAL MIDMONTH OR END OF
MONTH PAY.
6. FOR ENLISTED MEMBERS REQUESTING A ROTH CONTRIBUTION FROM THEIR
INITIAL SELECTIVE REENLISTMENT BONUS, THE FINANCE OFFICE MUST ENSURE
THAT NO BONUS PAYMENT IS MADE BY THEIR OFFICE. THIS WILL PREVENT
DUPLICATE PAYMENTS OF THE BONUS TO THE MEMBER.
7. THE ROTH CONTRIBUTION WILL POST TO THE DJMS PAY ACCOUNT AS A PK
PAYMENT WITH A VOUCHER NUMBER OF EITHER P9999993(ROTH CONTRIBUTION
WILL BE SENT AT THE END OF THE MONTH WITH THE NORMAL MONTHLY
CONTRIBUTION) OR P9999994 (ROTH CONTRIBUTION WILL BE SENT AS A DAILY
SUBMISSION). THE MEMBER WILL NEED TO NOTIFY THE FINANCE OFFICE THAT
THEY WANT THE ROTH TSP CONTRIBUTION TRANSMITTED TO THEIR TSP ACCOUNT
IMMEDIATELY.
8. THE ROTH ONE-TIME CONTRIBUTION TOTAL WILL NOT BE REFLECTED ON THE
LEAVE AND EARNING STATEMENT (LES).  HOWEVER THE ROTH ONE-TIME
CONTRIBUTION WILL BE REPORTED ON THE W2 INCOME STATEMENT.
9. IF THE MEMBER RECEIVES THE ONE-TIME PAYMENT THEN THEY WILL NOT BE
ALLOWED TO CONTRIBUTE THEIR ONE-TIME ENTITLEMENT TO ROTH TSP UNLESS
AN ADMINISTRATIVE ERROR HAS BEEN MADE. THE MEMBER MUST THEN FILE A
CLAIM USING DD FORM 2851.
10. THE ABOVE PROCEDURES WILL REMAIN IN EFFECT UNTIL ROTH TSP
CONTRIBUTIONS ARE AUTOMATED IN DEFENSE JOINT MILITARY PAY SYSTEM
(DJMS).
11. REQUEST WIDEST DISSEMINATION OF THIS MESSAGE.//