I made a contribution to a TSP Roth Account many years ago (after 1998). I transferred this TSP account to a Fidelity Roth IRA ~4 years ago. Two years ago I made a $6500 contribution to the Fidelity Roth. I'd like to withdraw some of the money but stay at or below the basis to avoid the tax/penalty. Am I limited to the $6500 or is the original TSP Roth contribution considered part of the total basis?
Your contribution basis in the Roth IRA is the basis transferred from the TSP Roth plus the $6,500 regular contribution basis. If the distribution from the TSP Roth that was rolled over to the Roth IRA would have been a qualified distribution from the TSP Roth (at the time of the distribution from the TSP Roth, age 59½ or over and more than 5 years from the beginning of the year in which you first made a TSP Roth contribution) had it been paid to you, the entire amount rolled over is now considered contribution basis in your Roth IRA. If it would not have been a qualified distribution from the TSP Roth, only your original TSP Roth contribution basis (shown in box 5 of the Form 1099-R reporting the distribution from the TSP Roth) became contribution basis in your Roth IRA.
Your contribution basis in the Roth IRA is the basis transferred from the TSP Roth plus the $6,500 regular contribution basis. If the distribution from the TSP Roth that was rolled over to the Roth IRA would have been a qualified distribution from the TSP Roth (at the time of the distribution from the TSP Roth, age 59½ or over and more than 5 years from the beginning of the year in which you first made a TSP Roth contribution) had it been paid to you, the entire amount rolled over is now considered contribution basis in your Roth IRA. If it would not have been a qualified distribution from the TSP Roth, only your original TSP Roth contribution basis (shown in box 5 of the Form 1099-R reporting the distribution from the TSP Roth) became contribution basis in your Roth IRA.