FRTIBFinal RuleJanuary 26, 2026

Roth In-Plan Conversion; Correction

Finance & BankingLabor & Workplace

Summary

This regulation allows federal employees to convert money from their traditional retirement accounts into Roth accounts, which offer different tax benefits. The change gives workers more flexibility in how they manage their retirement savings and plan their taxes.

Key Points

1Federal employees can now move money from regular retirement accounts (like the Traditional TSP) into Roth accounts within their existing retirement plan
2Roth conversions mean paying taxes now on the money being moved, but future withdrawals in retirement won't be taxed
3This option is most useful for federal workers who expect to be in a lower tax bracket now than in retirement
4The Federal Retirement Thrift Investment Board (FRTIB) issued this rule to clarify and correct details about how in-plan conversions work
5Federal employees should review their retirement strategy with a financial advisor to decide if converting makes sense for their situation

Key Dates

Published

January 26, 2026

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This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.