Can I roll my TSP acct to a Roth while employed?

[dhstdog]

Been attempting to conduct some due diligence on this question. I am wondering if I can transfer some or all of my TSP account to a Roth IRA while I am still employed? I know I have to have cash to pay taxes on the money that is transferred directly etc. TSP stated they have never heard of this being done.

This is not a loan or a emergency withdrawal. PPA law is what im looking at. I would like to take out 100k and transfer it to my ETF IRA, pay taxes on it now and then it is tax free withdraw when I retire. Is this possible.

Thanks in advance for all responses.

Tdog

 

[Scout333]

Been attempting to conduct some due diligence on this question. I am wondering if I can transfer some or all of my TSP account to a Roth IRA while I am still employed? I know I have to have cash to pay taxes on the money that is transferred directly etc. TSP stated they have never heard of this being done.

This is not a loan or a emergency withdrawal. PPA law is what im looking at. I would like to take out 100k and transfer it to my ETF IRA, pay taxes on it now and then it is tax free withdraw when I retire. Is this possible.

Try the TSP.Gov site under in-service withdrawals. Appears you may be able to under age-based withdrawals. "You can transfer or roll over all or part of your age-based in-service withdrawal to a traditional IRA or eligible employer plan.7 This means you can ask the TSP to transfer your withdrawal or you can roll over your withdrawal yourself. Depending on the type of plan you move your money into, the funds you transfer or roll over may become subject to plan rules different from those that govern the TSP. Whichever you do, your money will not be taxed until you withdraw it from the traditional IRA or the eligible employer plan.

You can also transfer or roll over all or part of your age-based inservice withdrawal to a Roth IRA. A Roth IRA accepts only after-tax
dollars, but provides tax-free growth. You are not eligible for a Roth transfer if either of the following conditions applies: (1) your modified
adjusted gross income is over $100,000, or (2) you are married and file a separate return. You must pay tax on the amount you transfer from
the TSP to a Roth IRA; the tax liability is incurred for the year of the transfer. We strongly encourage you to consult with a tax advisor regarding your
eligibility for, and the tax consequences of, making such a transfer."

https://www.tsp.gov/planparticipation/inservicewithdrawals/basics.shtml

Good luck!

 

[Elgallo]

While employed NO.

However the powers that be will allow you, while you are employed, to roll all the money you have in other accounts INTO the TSP. You see there is NO REAL money in your TSP to roll OUT but the gubmint will gladly take REAL money IN from other sources. Now Isn't that special..

 

[Zebe]

I believe the one-time age based withdrawl is available at age 59 1/2.

 

[Scout333]

Additional info re Roth Conversions from the Motley Fool-

http://msn.fool.com/retirement/gene...&source=eedmsnlnk0010001&published=2010-08-23