Roth In-Plan Conversions

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

Impact Assessment

Key Dates