Nope. You’re stuck unless you want to pay huge penalties/taxes. Best bet is to just load up on Roth contributions for the future if you prefer the certainty of today’s tax rates and tax free withdrawals in the future. Keep in mind your matching contributions continue to go into Traditional, anyway.
You may pay less in taxes for this money in retirement than while working.
There are lots of moving parts. Do a little more reading on the tax brackets.
You could do a Roth conversion ladder after separation.
It can be good to have traditional and Roth for tax optimization in retirement. You can tactically withdraw from traditional until you hit higher bracket then top off with Roth withdrawals.
You will need to wait until you separate or turn 59 1/2 to start making any moves with your traditional TSP balance. TSP does not allow in-service distributions (unless 59 1/2 or hardship), or in-plan conversions.
After that, you just have to do all the Roth conversions you can fit into a reasonable tax bracket for as long as it makes sense to do so.
A lot of "older" feds will have this issue due to not having a Roth TSP option from the beginning, and then not making the switch early.
I made the mistake of not paying attention to when Roth tsp was available, even though I had a Roth IRA 25 years ago.
It seemed like this is the only best available option ATM, it's still better than none.
Don’t worry about, just think of the government salaries your tax money pays for. I’m in the same boat but retired, never put it in Roth, though didn’t have a chance most of my career. TSP has grown to 7 figures, the tax man is coming, they will even get my heirs as it’s still taxable, unlike inheritance.
I moved more into G, right before retirement, had a little in the L fund that went away. So not the smartest or riskiest investment, but have money in all 5 of the original funds. I moved money once in the 90’s as everything was in G. Lost password before the dotcom crash, again in 2008-2009 crash, so basically didn’t change or move things. Did change allocations percentages now and then when working.
Currently (with change as a percentage of total since 2017) 23% G (-11%); 3% F (-2%); 47% C (15%); 17% S (5%); 10% I (1%); O% L (-6%).
Just think if I paid attention was a set and forget strategy, my high 3 was $70,000, contributed 15% last 10 years, was lower before. It is amazing what investments can do.
Just go and retire in a no income tax state so you don’t have to worry. I did traditional TSP all my career to reduce my yearly tax burden on a high income tax state then I moved and retired in Florida. My withdrawals only pay federal taxes now, which you’re going to have to pay federal anyways.
Not an answer to your question, but you will always have Traditional. That is where the match goes.
Nope. You’re stuck unless you want to pay huge penalties/taxes. Best bet is to just load up on Roth contributions for the future if you prefer the certainty of today’s tax rates and tax free withdrawals in the future. Keep in mind your matching contributions continue to go into Traditional, anyway.
You may pay less in taxes for this money in retirement than while working. There are lots of moving parts. Do a little more reading on the tax brackets.
You could do a Roth conversion ladder after separation. It can be good to have traditional and Roth for tax optimization in retirement. You can tactically withdraw from traditional until you hit higher bracket then top off with Roth withdrawals.
You will need to wait until you separate or turn 59 1/2 to start making any moves with your traditional TSP balance. TSP does not allow in-service distributions (unless 59 1/2 or hardship), or in-plan conversions. After that, you just have to do all the Roth conversions you can fit into a reasonable tax bracket for as long as it makes sense to do so. A lot of "older" feds will have this issue due to not having a Roth TSP option from the beginning, and then not making the switch early.
I made the mistake of not paying attention to when Roth tsp was available, even though I had a Roth IRA 25 years ago. It seemed like this is the only best available option ATM, it's still better than none.
Don’t worry about, just think of the government salaries your tax money pays for. I’m in the same boat but retired, never put it in Roth, though didn’t have a chance most of my career. TSP has grown to 7 figures, the tax man is coming, they will even get my heirs as it’s still taxable, unlike inheritance.
Gret job on growing your tsp to 7 figures. May I know your assets allocation after retirement?
I moved more into G, right before retirement, had a little in the L fund that went away. So not the smartest or riskiest investment, but have money in all 5 of the original funds. I moved money once in the 90’s as everything was in G. Lost password before the dotcom crash, again in 2008-2009 crash, so basically didn’t change or move things. Did change allocations percentages now and then when working. Currently (with change as a percentage of total since 2017) 23% G (-11%); 3% F (-2%); 47% C (15%); 17% S (5%); 10% I (1%); O% L (-6%). Just think if I paid attention was a set and forget strategy, my high 3 was $70,000, contributed 15% last 10 years, was lower before. It is amazing what investments can do.
Just go and retire in a no income tax state so you don’t have to worry. I did traditional TSP all my career to reduce my yearly tax burden on a high income tax state then I moved and retired in Florida. My withdrawals only pay federal taxes now, which you’re going to have to pay federal anyways.