FRTIBFinal Rule

Roth In-Plan Conversions

Finance & BankingLabor & Workplace

Summary

This regulation allows federal employees and retirees to convert some of their traditional retirement savings into Roth accounts, which offer tax advantages for withdrawals in retirement. This gives federal workers more flexibility in managing their taxes and retirement income planning.

Key Points

  • 1Federal employees can now move money from their traditional retirement accounts (like the TSP) into Roth accounts within their current plan
  • 2Roth conversions require paying taxes on the converted amount upfront, but future withdrawals in retirement are generally tax-free
  • 3This rule applies to employees of the Federal Retirement Thrift Investment Board (FRTIB), which manages retirement plans for federal workers
  • 4The conversion option gives federal employees more control over their tax strategy during their working and retirement years
  • 5Employees interested in converting should consult with a financial advisor to understand the tax implications before making changes

Key Dates

Published

January 15, 2026

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.

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