Roth TSP


Q: Once the Roth option becomes available through the Thrift Savings Plan (supposedly the first pay period in 2012), is there any IRS preclusion to making substantially equal periodic payment (SEPP) distributions in 10 years or less from our current TSP into our upcoming Roth TSPs?  SEPP distributions in 10 years or less are currently permitted in regular Roth IRA’s and regular Roth 401K’s;  I see no reason the IRS regulations would prohibit similar SEPP distributions in TSP, would love to be able to do so, and would like to be able to plan accordingly.

A: I’m not sure I understand the “10 year or less” premise underlying this question. SEPP is a way to extract money from a retirement plan account without incurring the early withdrawal penalty, but a SEPP stream must continue until age 59 1/2 or for at least 10 years, whichever is longer.


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