Background: Client has had Roth IRA greater than five years outside of her TSP. She retired from the Government and kept the rest of her TSP. Her TSP has a Roth component as well as the pre-tax component. She can now dictate which side of the TSP she wants to withdraw.

She would like to roll over $30k of the pre-tax money into an IRA and convert to a Roth. She would pay ordinary income tax on the conversion of $30k which she understands, but she is being told the five year clock restarts for the Roth conversion. I remember something about Roth portions of 401(k)’s could not be co-mingled with another Roth and it started the 5 year clock again but that was when the Roth portion of the Roth 401(k) rolled to a separate Roth at retirement.

Am I missing something here. I don’t see a problem with what she wants to do and not have to start the five year clock again.

Thanks in advance for your help! Happy 4th