TSP traditional and Roth


Q. I noted in your most recent answer that “Under the current rules, your
withdrawals will come, proportionately, from both the Traditional and Roth
accounts.”. That would seem to argue in favor of rolling over any Roth TSP
to a Roth outside of TSP, both to reduce the amount of the TSP RMD and not
having to withdraw anything from the Roth.

A. I disagree.The fact that you cannot selectively take money from either the Roth or Traditional TSP balances does not, in and of itself, argue in favor of taking money out of the TSP. There are a number of factors to consider in this decision, some of which are uncertain, and there is no one-size-fits-all answer.


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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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