The Fed15 Podcast | Ep. 142: Roth TSP Conversions Explained + Rethinking Your Retirement Number

Katelyn explains the new Roth TSP in-plan conversion option and the key tax considerations federal employees should understand before converting. She breaks down how conversions are taxed, how Roth TSP withdrawals are treated, and why the “five-year rule” matters when determining whether distributions will be tax-free or subject to penalties.

Dan explores a common retirement planning question: how much is enough to retire. He explains why the traditional 70–80% salary rule can fall short and introduces the 25x rule as a more practical way to estimate savings needs. He also discusses building an income floor with pensions and Social Security, using investments for flexibility, and stress-testing retirement plans to prepare for taxes, market changes, and unexpected expenses.