TSP Adds In-Plan Roth Conversions (Traditional to Roth TSP)

The Thrift Savings Plan now allows in-plan Roth conversions, letting participants convert Traditional TSP balances to Roth TSP without moving funds to an IRA. Conversions are taxable as ordinary income in the year completed and may require planning for withholding or estimated tax payments. The conversion does not eliminate required minimum distribution (RMD) obligations.