In this episode, Ed and Dan take a deeper look at the tax consequences of Roth TSP in-plan conversions beginning in 2026, with a focus on how the IRS “five-year rules” impact withdrawals. The discussion breaks down how traditional vs. nondeductible IRA money is taxed at conversion, how the Roth TSP “bucket” system works, and why timing matters when accessing converted funds and earnings. Listeners will gain a clearer understanding of how taxes, penalties, and holding periods interact after a conversion.
Join us as Dan and Ed explain how Roth TSP in-plan conversions are taxed and what federal employees need to know before moving money into Roth accounts.
In this episode, you’ll learn:Source Article: https://stwserve.com/understanding-the-five-year-rule-with-respect-to-roth-tsp-in-plan-conversions/
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The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
