TSP Roth Conversions Top $1 Billion as 2.9 Million Investors Hold Balances
Updated
Updated · FEDweek · Aug 25
TSP Roth Conversions Top $1 Billion as 2.9 Million Investors Hold Balances
1 articles · Updated · FEDweek · Aug 25
Summary
$1 billion has now been converted from traditional to Roth status inside the Thrift Savings Plan since in-plan conversions began early this year, with about 40,000 account holders using the option.
2.9 million of TSP's 7.35 million account holders now have at least some Roth money, though total Roth assets remain a small slice of the plan at about $98 billion out of $1.147 trillion.
The conversions extend interest beyond the initial early-adopter surge, even though converted amounts are taxable in the year of the switch and subject to other restrictions.
July still brought an $8 billion drop in overall TSP assets as all funds except the government-securities G fund fell, while Roth use remained far higher among military participants than among civilian CSRS retirees.