This month, the TSP will begin allowing Roth Conversions. Previously, you would have to 1. Separate from service 2. Roll your traditional TSP balance into a Traditional IRA at brokerage firm (like Schwab or Vanguard), then 3. Begin the conversions. Now, you can do it all in the TSP ecosystem. See below details from the latest TSP email-
"Optional Roth in-plan conversions available January 28 to all participants
Starting January 28, 2026, you’ll have the option to convert money in your traditional (pre-tax) balance to your Roth (after-tax) balance in your TSP account.
Roth in-plan conversions are available to all TSP participants:
- Active participants (current federal civilian employees and uniformed services members)
- Separated and retired participants
- Spouse beneficiary participants
You don’t have to have a Roth TSP balance to do a Roth in-plan conversion. If you don’t have a Roth TSP balance, your first Roth in-plan conversion will create one in your TSP account.
If you’re considering doing a Roth in-plan conversion, we strongly recommend that you consult a tax advisor. When you convert pre-tax money from your traditional TSP balance, your Roth in-plan conversion amount becomes part of your taxable income for the year. This means that you’ll pay income tax on the conversion amount based on your income tax rate. You must pay the income tax on the conversion amount using personal funds from another source, such as a savings account. You cannot use part of the amount you’re converting to pay taxes."
