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Financial Planning / Thrift Savings Plan (TSP)


Subject:  Re: What to do with a TSP?? Date:  2/13/2011  11:36 AM
Author:  JudasTouch Number:  78 of 93


If I do roll it over into a roth, will I incur any expenses or tax obligations because of the move?

In a word: Yes!

TSP contributions are pre-tax, while Roth contributions are taxed. Rolling that money into a Roth will force you to take an immediate tax hit. So, you'd want to investigate rolling it into a traditional IRA, if anything.

A talk with a tax professional might be in order. I am not such a creature. That said, here are my thoughts: I do recommend leaving that cash in your TSP account, especially if your tolerance for p