Roth conversion opportunity

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12squared
Posts: 486
Joined: Thu Dec 31, 2015 7:28 am

Roth conversion opportunity

Post by 12squared »

A down market may be an opportunity to reduce the tax burden of a Roth conversion.
why a Roth individual retirement account conversion may pay off in a down market
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jimcasada
Posts: 167
Joined: Mon Jan 12, 2015 4:40 pm

Re: Roth conversion opportunity

Post by jimcasada »

Interesting article. I've been thinking that after I retire next year might be a good time to convert some of my IRA & TSP savings over to a Roth. Anyone else doing/done this?

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evilanne
Posts: 2008
Joined: Thu May 14, 2015 6:52 pm

Re: Roth conversion opportunity

Post by evilanne »

I've done conversions several years, wasn't planning on doing any this year but depends on how bad things get during the year

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IRQVET
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Joined: Tue May 03, 2016 12:45 am

Re: Roth conversion opportunity

Post by IRQVET »

Does TSP allow someone to do this?
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Scarfinger
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Joined: Mon Jan 30, 2012 12:00 am

Re: Roth conversion opportunity

Post by Scarfinger »

I believe the only option is to convert some to a Roth IRA. I am 99% sure you can not convert within the TSP traditional to Roth. You have to move the money out to an IRA.

From Fed-retirement website:
The TSP does not allow for ROTH conversions. The TSP will allow you to change the tax status of your contributions from Traditional to ROTH which will affect contributions moving forward.
I am just an average Joe. I have no clue to what the market will do.
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