What You Need to Know About The Military and Federal TSP In-Plan Roth Conversion

A Roth conversion inside the TSP can be a powerful tax move for military members and federal employees. It can also be an expensive mistake. The recent addition of TSP in-plan Roth conversions gives you more control over when you pay taxes, but it also adds complexity that many participants overlook. Whether you're active duty, transitioning, or already retired, understanding how conversions affect your tax bracket, pensions, future RMDs, and overall retirement strategy is critical. This article breaks down what an in-plan Roth conversion really does, who it tends to benefit, and the specific TSP rules you need to know before making a permanent decision.