Q: You answered a question in March about a “special rule” that allows for a tax-free transaction if someone split a traditional individual retirement account, converting some into a Thrift Savings Plan account and the rest into a Roth IRA. Please tell us the special rule so we have it when questioned. Also, can a retiree do this? I would convert my (pre-tax) earnings in my traditional IRA to TSP and then roll the basis into the Roth.
A: You’ll find the information you’re looking for on Page 23 of IRS Publication 590. If you’re not sure about how to proceed, you should consult a tax adviser about your specific situation.