Federal employees with traditional Thrift Savings Plans can now convert money to a Roth TSP. This moves their future qualified growth and withdrawals into tax-free territory, but creates a substantial current-year tax bill. However, Roth TSP balances are not subject to lifetime required minimum distributions (RMDs). Here’s how the tax cost and timing can help determine whether converting supports a broader retirement strategy.
A financial advisor can help you meet all your long-term financial goals, including retirement plans.
How TSP Roth Conversions Work
A Roth in-plan conversion allows a participant to move money from a traditional TSP…
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