What new improvements will the Thrift Savings Plan have in store for participants next year? Beginning in January, TSP participants will be able to do in-plan conversions, moving traditional TSP monies into the Roth TSP.
This is a really big deal, and the Thrift Board hopes to allow these conversions as early as next January. Let’s hope that there’s no slippage in the date.
Once these conversions are allowed, any TSP participant may move money from traditional to Roth balances. Currently, if a TSP participant wants to move money from their traditional TSP balance to a Roth account, they’ll have to do it in a Roth IRA. This requires that they roll over the money they want to convert into a traditional IRA and then convert that traditional IRA to a Roth IRA
