In this episode, Dan and Ed explain the new Roth TSP in-plan conversion feature beginning January 28, 2026. They review how the process works, eligibility requirements, tax considerations, and important rules federal employees and retirees should understand before converting traditional TSP funds to Roth TSP.
Check Out Our Next FERS Webinar for Federal Employees -
FedLife Podcast | Ep. 161: Roth TSP In-Plan Conversions – What Federal Employees Need to Know
Join us as Dan and Ed break down the new Roth TSP in-plan conversion option and highlight key financial and tax considerations for federal employees and retirees.
In this episode, you’ll learn:
- What a Roth TSP in-plan conversion is and how it differs from converting through an IRA rollover
- Eligibility requirements, including vested balances and participant types who qualify
- Immediate federal and state income tax implications of converting traditional TSP funds
- How conversions may affect adjusted gross income (AGI), marginal tax brackets, and Medicare premiums
- Estimated tax payment requirements and quarterly deadlines following a conversion
- Minimum conversion amounts ($500), annual conversion limits (26 per account), and “leave-behind” rules
- Required minimum distribution (RMD) considerations before converting
- Investment restrictions, including mutual fund window limitations
Source Article: https://stwserve.com/tsp-announces-start-of-roth-tsp-in-plan-conversions/
Like and Subscribe on YouTube at YouTube.com/FedLife
“Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Lee, Sipe & Associates, Inc. is not a registered broker/dealer and is independent of Raymond James. Content represents the opinions of the speaker and not necessarily those of Raymond James. Important Disclosure Information: http://raymondjames.com/smicd.htm.
