After reading a lot of the discussions about Roth TSP, I’m considering a decade-long strategy to gradually convert my Traditional TSP to Roth TSP.

Here’s my situation:

• Currently have $700K+ in Traditional TSP
• $0 in Roth TSP currently
• Already contributing to a Roth IRA and have a taxable brokerage account
• Married filing jointly (MFJ)
• Live in a no-state-income-tax state
• About 15 years until retirement eligibility

My plan starting in 2027

1. Direct my employee TSP contributions entirely to Roth TSP
2. Continue receiving the 5% agency match, which would go into Traditional TSP
3. Each year, convert an amount from Traditional TSP to Roth, targeting approximately $40,000/year
4. Rather than making $40K a fixed annual amount, I would adjust the conversion each year based on my actual taxable income and available room within the 22% federal marginal tax bracket
5. Pay the conversion taxes through additional payroll withholding rather than taking the taxes out of the conversion itself
6. Continue the strategy for roughly over a decade

Why target the 22% bracket?

The goal is to take advantage of the 22% federal marginal tax bracket while I'm still working, without intentionally pushing additional income into the 24% bracket.

The thinking is that gradually moving money from Traditional → Roth while I'm working could reduce the amount eventually subject to RMDs and give me more tax-free money in retirement.

I've also been using LLMs/ChatGPT to model different scenarios, including future RMDs, retirement income, and the potential tax impact of doing larger conversions later.

My goals are::

1. To substantially reduce or eliminate my Traditional TSP before RMDs begin, currently expected at age 75 under current law.
2. To avoid leaving family with large tax bill when I am not around.
3. Survivor situation, and Medicare considerations.
4. Deciding whether paying ~$8,800 on $40,0000 today is worthwhile to permanently eliminate future federal income tax on the converted principal and its future qualified growth.
5. Is paying 22% today worth avoiding potentially higher taxation on this money later?
6. How much Traditional money do I want to have when I retire?

What would you change about this strategy?

Are there any TSP rules, tax issues, or other considerations I'm overlooking?

For those who have done a similar Traditional → Roth conversion strategy over several years, what did you wish you had known before starting?

I'm particularly interested in hearing from FedRetirees who have actually done this with a TSP.

After reading a lot of the discussions here about Roth TSP, I’m considering a decade-long strategy to gradually convert my Traditional TSP to Roth TSP.

Here’s my situation:

• Currently have $700K+ in Traditional TSP
• $0 in Roth TSP currently
• Already contributing to a Roth IRA and have a taxable brokerage account
• Married filing jointly (MFJ)
• Live in a no-state-income-tax state
• About 15 years until retirement eligibility

My plan starting in 2027

1. Direct my employee TSP contributions entirely to Roth TSP
2. Continue receiving the 5% agency match, which would go into Traditional TSP
3. Each year, convert an amount from Traditional TSP to Roth, targeting approximately $40,000/year
4. Rather than making $40K a fixed annual amount, I would adjust the conversion each year based on my actual taxable income and available room within the 22% federal marginal tax bracket
5. Pay the conversion taxes through additional payroll withholding rather than taking the taxes out of the conversion itself
6. Continue the strategy for roughly over a decade

Why target the 22% bracket?

The goal is to take advantage of the 22% federal marginal tax bracket while I'm still working, without intentionally pushing additional income into the 24% bracket.

The thinking is that gradually moving money from Traditional → Roth while I'm working could reduce the amount eventually subject to RMDs and give me more tax-free money in retirement.

I've also been using LLMs/ChatGPT to model different scenarios, including future RMDs, retirement income, and the potential tax impact of doing larger conversions later.

My goals are::

1. To substantially reduce or eliminate my Traditional TSP before RMDs begin, currently expected at age 75 under current law.
2. To avoid leaving family with large tax bill when I am not around.
3. Survivor situation, and Medicare considerations.
4. Deciding whether paying ~$8,800 on $40,0000 today is worthwhile to permanently eliminate future federal income tax on the converted principal and its future qualified growth.
5. Is paying 22% today worth avoiding potentially higher taxation on this money later?
6. How much Traditional money do I want to have when I retire?

What would you change about this strategy?

Are there any TSP rules, tax issues, or other considerations I'm overlooking?

For those who have done a similar Traditional → Roth conversion strategy over several years, what did you wish you had known before starting?

I'm particularly interested in hearing from people who have actually done this with a TSP rather than just a regular IRA.