During my first year in the army I wasn’t very sure on what the difference was between Traditional and Roth so I had a little bit on each, now that I know a little better I have all in my roth, but I’d like to know if I can transfer what I have in traditional into my roth or do I just have to suck it up?
Transfer old Traditional TSP to Roth?
byu/Jaded_Elk_4756 inMilitaryFinance
Posted by Jaded_Elk_4756
2 Comments
Are you out of the Army? Can’t transfer until you’re out.
If you’re out, you can transfer to a Traditional IRA and then convert that traditional IRA to a Roth IRA by paying the taxes on it. Not sure if you can transfer directly to a Roth IRA.
TSP does not allow for direct Roth conversions. Once you’re out of the service, you could roll over your traditional TSP into an outside Traditional IRA, and then convert that to Roth IRA, but you will owe taxes on the amount converted.