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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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VAer1  
#1 Posted : Wednesday, April 29, 2020 11:03:53 AM(UTC)
VAer1

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I did not realize I made traditional contribution(rather than Roth contribution) before, now I changed to roth contribution.

How can convert traditonal contribution (by myself) to roth? Even if I pay the tax now.

Thanks.
someoldguy  
#2 Posted : Thursday, April 30, 2020 8:30:10 AM(UTC)
someoldguy

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There's got to be something on the tsp.gov web site about this; unfortunately it is not the easiest to navigate. Lots of other TSP web sites out there but you may want to get some advice as far as how to do this conversion with an eye on minimizing taxes. For example, you would not want to bump yourself into a higher tax bracket with the conversion. Also you may want to do the conversion over the period of a few years.

TSP customer service can be slow on a good day and these are hardly good days.
DISCLAIMER: You read it on an open internet forum :)
Roger.D  
#3 Posted : Friday, May 1, 2020 6:25:36 PM(UTC)
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https://www.tsp.gov/Plan.../TaxTreatment/index.html

Quote:
If you want to make contributions, you must submit a contribution election to tell your agency what portion of your pay you want to contribute and how you want to designate them between traditional and Roth. You cannot convert any portion of your existing traditional TSP balance to a Roth balance.


https://www.fedsmith.com...me-now-roth-conversions/

Quote:
Rarely does a week goes by without someone asking me if they can convert their Thrift Savings Plan to the Roth TSP or a Roth IRA. The simple answer to that question is no. A regular TSP cannot be converted to Roth TSP, nor can TSP be converted directly to a Roth IRA.

However, even though it can’t be converted directly, TSP can be rolled over to an IRA and then converted to a Roth IRA. In order to move TSP to an IRA, you either have to be separated from service or over age 59 1/2 to do a transfer. If you have IRAs, they can be converted at any time.


If you didn't know, your agency matching funds will always be deposited in the traditional TSP.

As someoldguy mentioned, when you are able to do so, after retirement, don't convert so much that it bumps you into a higher tax bracket.
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