Transferring traditional TSP funds to a ROTH IRA


Q. I reached 70 1/2 yrs in 2014. I must start withdrawing my traditional TSP funds by April 1. I want to transfer the full amount (less than the RMDs for 2014 and 2015, plus 10% tax) to an existing ROTH IRA. A call to the ThriftLine informed me “there may be tax implications”. What might these tax implications be?

A. Distributions from your Traditional TSP account, unless they are rolled over to another tax-deferred retirement account, will be reported as ordinary income to be included on your tax return for the year of the distribution. A Roth IRA is not a tax-deferred retirement account.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

Leave A Reply