Q. I will have 40 years with the IRS in 2012 and plan to retire either this year or in 2013. I have been contributing to both the TSP and the Voluntary Contributions Program. I plan to leave the TSP contributions to the G Fund alone and just let it grow. The VCP is another matter. I have a Roth IRA with Vanguard and would like to transfer all of the VCP to the Vanguard Roth IRA.I know I am required to pay tax on the interest the VCP has earned in the year received. The question is how do I do this transfer? There seems to be a lot of information about the TSP, but I am finding it difficult to find information about the VCP.
A. You can convert the post-tax money in your VC account to a Roth and have the earnings rolled over to your TSP account. Use form RI 38-124 to request a split distribution and follow the advice of your tax adviser for converting the contributions to a Roth IRA.