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Roth conversion opportunity
Posted: Sat May 14, 2022 6:20 am
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
Re: Roth conversion opportunity
Posted: Tue May 17, 2022 7:24 pm
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?
Re: Roth conversion opportunity
Posted: Thu May 19, 2022 8:43 pm
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
Re: Roth conversion opportunity
Posted: Thu Jun 09, 2022 4:10 pm
by IRQVET
Does TSP allow someone to do this?
Re: Roth conversion opportunity
Posted: Fri Jun 10, 2022 9:55 am
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.