If you roll over funds from a traditional TSP to a Roth IRA there’s no penalty but you will have to pay tax on the amount at your marginal tax rate. 

@drildrill23 by "penalize" do you mean subject to income tax or subject to the 10% penalty? 

1) There is never a 10% penalty at the time of conversion (too detailed, but under certain circumstances, there could be a 10% penalty upon distribution)

2) There is income tax on the conversion from a Trad TSP.