§8432d Qualified Roth contribution program

Summary

Adds a Roth contribution choice to the Thrift Savings Plan and defines key terms. It says a “qualified Roth contribution program” is the kind described in Internal Revenue Code section 402A(b)(1) that meets that section’s rules. The terms “designated Roth contribution” and “elective deferral” mean what section 402A of the Internal Revenue Code says. The Executive Director must write rules to include the Roth option, under Board guidance. The rules must let people eligible under sections 8351, 8432(a), 8440a, 8440b, 8440c, 8440d, or 8440e choose designated Roth contributions, and must also allow any other person who can make elective deferrals to choose them. The rules must clarify any use of the word “account” in sections 8432(f), 8433, 8434(d), 8435, 8437, and add any other provisions needed to make the program work.