Q. After reviewing the TSP rules, it appears that I can’t transfer (or roll over) my Roth TSP monies into a qualified Roth IRA without a proportional share coming out of my traditional monies. Is this correct? I wanted to leave my traditional monies in my TSP and separate the Roth monies and roll them over into a Roth IRA.
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Q: You answered a question in March about a “special rule” that allows for a tax-free transaction if someone split a traditional individual retirement account, converting some into a Thrift Savings Plan account and the rest into a Roth IRA. Please tell us the special rule so we have it when questioned. Also, can a retiree do this? I would convert my (pre-tax) earnings in my traditional IRA to TSP and then roll the basis into the Roth. A: You’ll find the information you’re looking for on Page 23 of IRS Publication 590. If you’re not sure about how to proceed, you…
Q: I was in federal service for three years and contributed to the Thrift Savings Plan. I left federal service more than five years ago, but I still have money in my TSP account, all in the G Fund. It has grown over the past five years by several thousand dollars despite the fact that I have not put any money into the account in those five years. Is there a way I can contribute to TSP even though I am no longer in federal service and have not contributed any money to the fund recently? A: Yes, you can…
Q: I joined the federal government more than three years ago. Can I roll over money from my Individual Retirement Account into my Thrift Savings Plan account? A: Yes, as long as long as your IRA doesn’t contain basis — that is, money that’s already been taxed.