Tax exempt rollover
Client had their TSP traditional rollover check made out to their IRA. They recieved another check labeled ‘tax exempt’ that was made out to them individually. Can this be rolled to their Roth IRA as a 60 day rollover?
Client had their TSP traditional rollover check made out to their IRA. They recieved another check labeled ‘tax exempt’ that was made out to them individually. Can this be rolled to their Roth IRA as a 60 day rollover?
Permalink Submitted by Alan - IRA critic on Wed, 2021-12-08 20:33
Yes, if they know that the “tax exempt” amount is rollover eligible and perhaps were after tax contributions made to the TSP or were pre tax contributions recharacterized by the TSP as after tax contributions. If rolled to the Roth IRA, this would be tracked in the Roth IRA the same as a 2021 non taxable conversion to a Roth.