VCP and Roth TSP


Q. Someone asked you online Oct. 8 if they could deposit funds into the Voluntary Contributions Program and transfer “the whole amount” into a Roth TSP. You said “yes.” The poster said they thought they could only transfer interest to TSP.

By asking if they could transfer “the whole amount,” I believe they were wondering if they could transfer both contributions and interest. You have said as recently as an answer given on Sept. 24 that “You’ll have to use a Roth IRA for the after-tax portion of the VCP account,” and gave a corrected answer to a question posted on May 14 that “The Internal Revenue Code permits designated Roth accounts to accept transfers or rollovers only from another designated Roth account. Roth TSP balances are designated Roth accounts (or are treated like designated Roth accounts). The VCP is not a designated Roth account. Therefore, the TSP cannot accept a transfer or rollover from the VCP into a TSP Roth balance.”

It sounds from your most recent answer that something’s changed. Has it? Is it now possible to move VCP contributions to the Roth TSP?

A. Thank you. You’re correct. I made a mistake in the most recent answer — incorrectly reading the question to be about a Roth IRA rather than the Roth TSP. A rollover into the Roth TSP is not allowed, and I have corrected the error.


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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 and view his blog at

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