Roth conversions are coming to the Thrift Savings Plan—and for many federal employees, that sounds like a clear win. But the reality is more nuanced.
In this FedSmith article, I explain why Roth conversions are one of the most powerful tools in retirement planning—but also one of the easiest to misuse. Done correctly, they can reduce lifetime taxes and improve long-term outcomes. Done incorrectly, they can permanently lock in avoidable taxes.
The key isn’t whether to convert—it’s when, how much, and at what tax rate. And for federal employees with pensions, TSP balances, and Social Security, those decisions require careful, forward-looking analysis—not guesswork.
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