Are contributions (or basis) from a TSP Roth Account considered as contributions (or basis) after it was transferred to a Fidelity Roth IRA?

enigmadesign — Thu, 06 Jun 2019 09:55:06 GMT

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 tran...

dmertz — Thu, 06 Jun 2019 09:55:07 GMT

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.

topic Are contributions (or basis) from a TSP Roth Account considered as contributions (or basis) after it was transferred to a Fidelity Roth IRA? in Retirement tax questions

Are contributions (or basis) from a TSP Roth Account considered as contributions (or basis) after it was transferred to a Fidelity Roth IRA?

Your contribution basis in the Roth IRA is the basis tran...