Roth in-plan conversion overview

Background of repeated blue words "ROTH TSP TRADITIONAL TSP" and "TSP" in big letters as negative white space in the middle

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Roth in-plan conversion overview

Starting in January 2026, you’ll be able to convert money from your traditional (pre-tax) TSP balance to your Roth (after-tax) TSP balance. This new feature is called a “Roth in-plan conversion.” If you don’t have a Roth TSP balance in your TSP account, your first Roth in-plan conversion will create one.

While this option may benefit some participants, it’s important to understand that Roth in-plan conversions are complex and can have significant effects on your taxes. You should consult a qualified tax advisor before doing a Roth in-plan conversion.

To help with planning ahead of the January launch, we’ve created a webpage about Roth in-plan conversion rules and other important information.

If you’re considering a Roth in-plan conversion, be sure to read the entire webpage and watch for more tools and information that will be available closer to launch. This email includes some key details to get you started.

Tax effects when you do a conversion

When you do a Roth in-plan conversion, the amount you convert becomes part of your taxable income for the year, and you’ll owe income tax on the conversion amount at your income tax rate. You must pay the tax using personal funds from another source, such as from a savings account. You cannot use part of the amount you’re converting to pay taxes.

You also need to consider tax effects when you withdraw converted money later. There are two five-year rules that apply to withdrawals from your Roth TSP balance after you do a Roth in-plan conversion.

Available for all TSP participants

You’re eligible to do a Roth in-plan conversion if you have a vested traditional balance in your TSP account. This includes:

Active participants (current federal civilian employees and uniformed services members)
Separated and retired participants
Spouse beneficiary participants

Non-spouse beneficiaries are not eligible.

Parts of your traditional balance you can convert

You can convert contributions and earnings from your traditional TSP balance. When you choose your conversion amount, the money will be taken proportionally from your eligible contribution sources:

Your own payroll contributions
Agency/Service Matching Contributions (if applicable)
Agency/Service Automatic (1%) Contributions (if applicable)
Traditional rollover contributions

For uniformed service members: If your traditional balance includes a nontaxable amount, such as tax-exempt contributions from serving in a combat zone, your conversion amount will include a nontaxable amount in the same proportion as taxable and nontaxable amounts in your traditional balance.

Stay tuned for more tools and information

We’re working on more tools, such as calculators, and other ways to help explain Roth in-plan conversions and their effects on taxes and retirement income.

Learn more about Roth in-plan conversions

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