Rollover Tax-Exempt funds from TSP into Roth IRA?

[maverickfighter]

I am currently in the military and because of my deployment I have tax-exempt money in my TSP. Is there a way to rollover this money into a Roth IRA so that the money can be earn tax-free. I am still in the service and can only find limited information for withdrawing or rolling over this money. Do I have to wait until I leave service to be able to transfer this money to a Roth?

[creditcardfree]

I am currently in the military and because of my deployment I have tax-exempt money in my TSP. Is there a way to rollover this money into a Roth IRA so that the money can be earn tax-free. I am still in the service and can only find limited information for withdrawing or rolling over this money. Do I have to wait until I leave service to be able to transfer this money to a Roth?

I think you have to wait, although I would check the tsp website to be sure or call the customer service for the plan. I do know that when you start making withdrawals that the tax exempt portion comes out proportionally. So if 10% of the balance is tax exempt, and you take out $1000, $100 would be from the tax exempt funds.

The TSP works a lot like a 401k, which employers don't let you roll until you are no longer employed.

[maverickfighter]

Thanks for the info. Unfortunately I would have to rollover my entire TSP to get my tax-exempt money so that probably wont be benificial until after I get out.

[creditcardfree]

Thanks for the info. Unfortunately I would have to rollover my entire TSP to get my tax-exempt money so that probably wont be benificial until after I get out.

Exactly, so it is best to wait, but just know that those funds will be tax free when you retire.