PTTUZYUW RHMFISS0001 2341605-UUUU--RHSSSUU.
ZNR UUUUU
P 221603Z AUG 13
FM DFAS CLEVELAND OH
TO AIG 4730//
AIG 4676//
AIG 4678//
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UNCLAS
SUBJ/ADDITIONAL INFORMATION FOR THE ROTH THRIFT SAVINGS PLAN (TSP)
CONTRIBUTIONS FOR ACTIVE DUTY NAVY MEMBERS//
MILITARY PAY ADVISORY 26/13//
REF/A/MSG/DFAS-CL/281909Z SEP 2012//
AMPN/REF A IS THE INSTRUCTIONS FOR THE INTERIM PROCESSING
PROCEDURES FOR ROTH TSP CONTRIBUTIONS.//
POC/BARBARA BLOCK/CODE JFLQ/TEL:216-204-4308//
RMKS/1. THIS MILITARY PAY ADVISORY IS BEING ISSUED TO PROVIDE
ADDITIONAL INFORMATION ON ROTH TSP CONTRIBUTIONS.
2. THE ROTH TSP WORK-AROUND DOES NOT RECOGNIZE THE INTERNAL
REVENUE CODE (IRC) SECTION 402(G) LIMITATION WHICH IS $17500.00
FOR CALENDAR YEAR 2013. HOWEVER, IN CASES WHERE THE MEMBER EXCEEDS
THE LIMITATION TSP WILL REJECT ANY TSP CONTRIBUTIONS THAT WOULD
PLACE A MEMBER OVER THE IRC 402(G) LIMIT. MILPAYOPS WILL
INTERNALLY RECOMPUTE THE ALLOWABLE TSP CONTRIBUTION AND TRANSMIT
IT TO THE MEMBER'S TSP ACCOUNT, REFUND THE EXCESS TO THE MEMBER AND
ADJUST THE YEAR TO DATE WAGES AND TAXES IF APPLICABLE. AS A
REMINDER TRADITIONAL TSP WILL GO BEFORE ANY ROTH TSP. THE ROTH
CONTRIBUTION WILL BE STOPPED AND THE TRADITIONAL TSP WILL BE
SUSPENDED IF APPLICABLE UNLESS THE MEMBER IS IN A TAX-EXEMPT STATUS
AND CAN FURTHER CONTRIBUTE EXEMPT TSP. ROTH CONTRIBUTIONS WILL BE
STARTED  AND TRADITIONAL TSP CONTRIBUTIONS WILL RESUME JANUARY OF
THE FOLLOWING YEAR AT THE SAME AMOUNT AND PERCENTAGE IN AFFECT AT
THE TIME THE CONTRIBUTIONS WERE STOPPED AND/OR SUSPENDED.
3. ALL ROTH CONTRIBUTIONS ARE CONSIDERED ELECTIVE DEFERRALS AND
ARE SUBJECT TO THE IRC 402(G) LIMIT. THIS INCLUDES ROTH CONTRIBUTIONS
DEDUCTED FROM PAY SUBJECT TO THE COMBAT ZONE TAX EXCLUSION (CZTE).
THIS IS A SIGNIFICANT DIFFERENCE BETWEEN ROTH AND TRADITIONAL TAX-
EXEMPT CONTRIBUTIONS BECAUSE THE LATTER ARE NOT INCLUDED IN THE
ELECTIVE DEFERRAL CALCULATION.
4. IF A MEMBER RECEIVES NOTICE THAT THEIR ROTH TSP CONTRIBUTIONS
HAVE BEEN STOPPED THEN THEY SHOULD NOT GO INTO MYPAY AND RESTART
THEIR CONTRIBUTION. THIS WILL RESULT IN ANOTHER CONTRIBUTION BEING
DEDUCTED AND SENT TO TSP ONLY TO BE REJECTED BY TSP FOR EXCEEDING
THE IRC (402)G LIMIT.
5. TSP ROTH CONTRIBUTIONS WILL BE LISTED ON THE LEAVE AND EARNING
STATEMENT (LES) AS ROTH TSP UNDER THE ALLOTMENT SECTION. HOWEVER,
THE ROTH CONTRIBUTIONS WILL NOT BE REFLECTED IN THE TSP TOTALS
UNTIL THE CONTRIBUTIONS ARE REPORTED ON THE W2 INCOME TAX
STATEMENT.
6. REQUEST WIDEST DISSEMINATION POSSIBLE.//
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