# 2026-00765: Feds Can Now Roth-ify Their Retirement Savings Starting Soon 2026-00765, Roth In-Plan Conversions, is a Federal Register rule from Federal Retirement Thrift Investment Board published 2026-01-15, effective 2026-01-28 (as of 2026-06-11). - Canonical: https://policyrisk.com/federal-register/2026-00765 - As of: 2026-06-11 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-00765 - Title: Roth In-Plan Conversions - Type: Rule - Agencies: Federal Retirement Thrift Investment Board - Citation: 91 FR 1669 - Published: 2026-01-15 - Effective: 2026-01-28 - Comments close: not stated - Significant: no - Touches household money: no - Regulation identifier numbers: 3222-AA00 - Last updated: 2026-06-11 ## In one line Feds Can Now Roth-ify Their Retirement Savings Starting Soon ## Summary Starting January 28, 2026, federal employees and service members with a Thrift Savings Plan (TSP) can convert their traditional TSP money into Roth TSP funds. This means you’ll pay taxes now but could enjoy tax-free cash when you retire. It’s a fresh way to manage your retirement savings and take control of your tax future! ## Abstract The Federal Retirement Thrift Investment Board (FRTIB) is amending a regulation to permit participants in the Thrift Savings Plan (TSP) to convert amounts in their traditional TSP balances to their Roth TSP balances, subject to applicable tax consequences. ## Effects PRIA read - TSP Roth In-Plan Conversions Allowed: mixed, medium. Starting January 28, 2026, participants in the Thrift Savings Plan (TSP) may convert traditional (pre-tax and tax-exempt) TSP balances to Roth (after-tax) TSP balances. Converting triggers federal income tax on the converted amount now but may allow tax-free withdrawals in retirement under Roth rul… - Limit on Number of Conversions: benefit, low. A TSP participant or beneficiary participant may request up to 26 Roth in-plan conversions per calendar year. This limit aligns with a biweekly pay schedule and allows multiple conversion requests across the year. - Who Can Request Conversions: mixed, low. A Roth in-plan conversion may be requested by a participant or a beneficiary participant, including active participants, separated participants who keep TSP accounts after leaving service, and surviving spouses with a beneficiary participant account. Non-spouse beneficiaries and alternate payees ar… - Tax-Exempt Balances May Be Converted: benefit, medium. The rule authorizes conversions of both tax-exempt balances (for example, contributions from combat zone pay) and pre-tax balances as part of the traditional balance. Conversions must follow IRS pro rata requirements so tax-exempt and pre-tax amounts are included proportionally. - $500 Conversion Minimum and Balance Rules: cost, low. The final rule requires a conversion request amount of at least $500 and a vested account balance of at least $500 at the time of request. Participants must also retain at least $500 in each tax-deferred employee contribution, tax-exempt contribution, agency automatic (1%) contribution, and agency… - No Withholding — Taxes Must Be Paid From Personal Funds: cost, medium. Under IRS guidance referenced by the rule, no withholding applies to a Roth in-plan conversion of an otherwise nondistributable amount and participants cannot elect withholding for conversion taxes. Participants must pay federal income tax on converted amounts using personal funds from another sour… - RMDs Must Be Satisfied Before Conversion: cost, low. Roth in-plan conversions may be processed in years when a participant is subject to required minimum distributions (RMDs), but the RMD must be satisfied in full before any conversion is processed. This ensures compliance with IRS rules that prohibit conversion of RMD amounts. - Mutual Fund Window Conversion Limitation: cost, low. Amounts invested in the TSP Mutual Fund Window cannot be converted to Roth unless they are first transferred back into one or more of the TSP core funds. Conversions of Mutual Fund Window holdings therefore require an additional transfer step. - Required Notices and Acknowledgment Before Conversion: cost, low. The TSP will provide comprehensive communications explaining the tax implications of conversions, and participants must acknowledge receipt and understanding of such communications before completing a Roth in-plan conversion. The TSP will make materials available on the TSP website and through part… ## Related documents - [2026-14771](https://policyrisk.com/federal-register/2026-14771): Senior Executive Service Performance Review Board, 2026-07-22 - [2026-12133](https://policyrisk.com/federal-register/2026-12133): Notice of Board Meeting, 2026-06-17 - [2025-23253](https://policyrisk.com/federal-register/2025-23253): Curing Missed Loan Payments, 2025-12-18 - [2025-19538](https://policyrisk.com/federal-register/2025-19538): Roth In-Plan Conversions, 2025-10-15 - [2025-13005](https://policyrisk.com/federal-register/2025-13005): Correction of Administrative Errors, 2025-07-11 - [2025-12698](https://policyrisk.com/federal-register/2025-12698): Procedures for Applying Payments to Principal and Interest Upon Loan Reamortization, 2025-07-09 ## Sources - [2026-00765 on federalregister.gov](https://www.federalregister.gov/documents/2026/01/15/2026-00765/roth-in-plan-conversions) - [2026-00765 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-01-15/pdf/2026-00765.pdf) ## Related - [Previous: 2026-00753, Seamen's Service Awards; Amendment Replacing Gulf of Mexico With Gulf of America](https://policyrisk.com/federal-register/2026-00753) - [Next: 2026-00789, Revision to License Review Policy for Advanced Computing Commodities](https://policyrisk.com/federal-register/2026-00789) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-00765 (as of 2026-06-11).