Roth workplace accounts, which have grown more popular in recent years, are about to get a shot in the arm from Uncle Sam. This week the federal government started rolling out a Roth option to 3.3 million employees who participate in its main retirement program. Read more
The government is calling this Roth TSP, and it issued this press release
Agencies and services can now begin accepting elections for Roth (after-tax) contributions. The Roth TSP feature gives participants greater flexibility in the tax treatment of their accounts. Roth contributions are tax-free when withdrawn, and their earnings are also tax-free (as long as IRS requirements are met).
Outside of the government, Roth workplace accounts are commonly known as Roth 401(k) plans
. The official name at the IRS is a Designated Roth account which can be in a 401(k), 403(b) or a governmental 457(b) plan. The IRS has the details of these accounts at this page.