Rolling TSP to Roth IRA not a good option


Q. I am 69 years old and made a small early withdrawal from my TSP. I am thinking of retiring within the next two years and wondered if I should roll part of my TSP earnings into a Roth IRA. What are your suggestions? What type of Roth should I choose, and what amount should I roll over?

A. Nothing in your note indicates that there is a good reason for doing this. You will certainly incur higher investment expenses, lose access to the G Fund, and pay taxes at today’s rate. What do you expect to gain in return? Better returns? No. Less risk? No. Significantly lower taxes in the future? Not likely.


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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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