TSP and Roth

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Q: I have two Roth questions. First, I max out my TSP contributions and would contribute more if allowed. Am I right to view Roth contributions as a good means of essentially increasing my retirement contributions by pre-paying the taxes I’ll pay in retirement?  Second, after I retire, will I be allowed to transfer the Roth balance of my TSP account to an existing Roth IRA and leave my non-Roth balance in the TSP?

A: “Yes” to the first question and “It appears so” to the second.

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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.

1 Comment

  1. If the OP is CSRS he would qualify for the Voluntary Contribution Program. Just prior to retirement the OP could roll his VC account balance into a private ROTH account.

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