Long-time federal workers have a unique opportunity for tax-free retirement income…but
immediate action is vital. Under President Obama’s proposed budget, aftertax rollovers to Roth IRAs will end next year. Throughout 2015, Civil Service Retirement System (CSRS) and CSRS Offset employees can still lock in the benefits.
THE REWARDS OF ROTH IRAs
Savvy investors understand the advantages of Roth IRAs. Contributions arn’t tax-deductible,
but all withdrawals can be tax-free. So you don’t have to share your investment earnings with
However, contributions to Roth IRAs are limited to modest amounts. Besides making
contributions, you can convert a traditional IRA of any size to a Roth IRA—but that could mean paying a huge tax bill. Some federal employees can overcome those obstacles. If you are in the CSRS, you can contribute to the little-known Voluntary Contribution Program. Read more