Q. Will I be able to open a TSP Roth account and then roll my current Janus Roth IRA balance into it? How about after retirement? I have waited patiently for the promising TSP Roth, but it has been delayed time and again. Now it’s set for rollout in the second quarter of 2012. How nice: I’m planning to retire by the end of April, meaning that I may be ineligible for the TSP Roth if it is not offered by then.
If the TSP Roth begins in May, June, or afterwards, am I out of luck? Since I plan to maintain my TSP account for many more years, it would seem only fair to allow some expansion by rollover of an existing Roth to the new TSP Roth — at least for a brief window of time after the TSP Roth becomes available. This could “populate” the new TSP feature sooner and give federal employees and retirees a single online site for their portfolios in many cases! We are now less than 90 days away from the second quarter of 2012 and the silence is deafening. Will there be yet another delay?
A co-worker wants to do the same thing, and there must be many more. USAA, Fidelity, and other providers are waiting….
A. You’ll have to wait until the rules for the program are announced. I am with you in hoping that Roth IRA transfers into the new plan are permitted in the same way that Traditional IRA transfers are.