topic Re: TSP to Roth IRA Conversion Question in Retirement tax questions

TSP to Roth IRA Conversion Question

drildrill23 — Sun, 13 Jul 2025 15:58:51 GMT

I am planning on ROLLING over halve of my TSP into my Charles Schwab Roth IRA account this year 2025, but I am afraid that doing so will affect my returns next year. With that said and out of the way, can I ROLLOVER my TSP into my Roth IRA account without been penalized?

Re: TSP to Roth IRA Conversion Question

Bsch4477 — Sun, 13 Jul 2025 17:28:10 GMT

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.

Re: TSP to Roth IRA Conversion Question

NCperson — Sun, 13 Jul 2025 20:56:10 GMT

@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.