In-Plan Roth Conversions Come to Thrift Savings Plans in Late January

Civilian federal employees and uniformed service members will soon be able to convert their pre-tax Thrift Savings Plan balances to Roth accounts without leaving the plan.

The Federal Retirement Thrift Investment Board, which administers the TSP, released a final rule on Wednesday permitting TSP participants and spousal beneficiaries to perform in-plan Roth conversions starting January 28. Under the new feature, participants with at least $500 in vested funds will be eligible to convert any portion of their traditional TSP balance.

Participants can request up to 26 conversions per account each year, specified in specific dollar amounts or percentages. Each conversion will count as taxable income for the year in which the conversion occurs, meaning participants will owe income taxes on the converted amount, according to their marginal rate.

In addition, a new calculator on TSP.gov is now available to help participants estimate the potential tax effects of performing an in-plan Roth conversion. The calculator will be available in participants’ portals the same day in-plan conversions go live.

A TSP bulletin published in December 2025 stated that in-plan Roth conversions would be available in participants’ online portals starting in late January 2026.

The Federal Retirement Thrift Investment Board previously urged participants to consult a tax professional before proceeding, as Roth in-plan conversions are irrevocable once processed.