Limitations on Roth Conversions
Is there a limit to the number of times per year that I convert funds from my traditional IRA (in a TSP account) to my existing Roth IRA account? Also, how should I handle the tax obligations associated with the conversion? Thanks in advance.
Permalink Submitted by Alan - IRA critic on Mon, 2020-02-03 22:43
A TSP is not an IRA, but if you are eligible for distributions from the TSP, you can do direct rollovers from the TSP to your Roth IRA. These rollovers are taxable and cannot be recharacterized, so you need to be careful not to roll over too much in a single year. There is no IRS limit to the number of these rollovers, but the TSP might have their own limit. If you do these Roth rollovers, you will probably need to pay quarterly estimated taxes to avoid underpayment penalties.