The TSP has proposed rules to carry out the previously announced authority beginning in calendar year 2026 for investors to convert money from traditional status to Roth status within their accounts.
The TSP “believes that offering Roth in-plan conversions will improve participant satisfaction and provide valuable retirement planning flexibility while maintaining the TSP’s low administrative costs,” says a notice in the October 15 Federal Register.
It notes that since the option to make investments in Roth status began in 2012, “participants have expressed interest in converting traditional balances to Roth balances within the plan” and that in a survey last year, 35 percent said they are likely or extremely likely to make conversions if allowed.
