Q. Is it possible/advisable or a good idea to roll money I have from established IRAs (both traditional and ROTH) into my TSP account? Basically, paying into TSP over a number of years playing ‘catch up’ since I’m over 50. What kind of penalties or taxes would I be looking at?
A. It is possible and usually a good idea to transfer your IRA money into the TSP. Only pre-tax balances from IRA accounts are allowed — no Roth IRA money may be transferred. If your IRA account contains after-tax money from non-deductible contributions, you may transfer the pre-tax money to the TSP and then convert the after-tax money to a Roth IRA. Getting this done properly can be complicated, so you should consult a qualified and trustworthy advisor before taking any action.