{"id":435033,"date":"2026-01-28T15:48:17","date_gmt":"2026-01-28T15:48:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/435033\/"},"modified":"2026-01-28T15:48:17","modified_gmt":"2026-01-28T15:48:17","slug":"average-tsp-account-up-about-20000-in-2025-roth-conversion-option-launching","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/435033\/","title":{"rendered":"Average TSP Account Up about $20,000 in 2025; Roth Conversion Option Launching"},"content":{"rendered":"

\t\t\"\"
\n\t\t\t\t\tOf the $1.07 trillion investment total, $91 billion is in Roth status; just under 3 million of the program\u2019s 7.3 million account holders have some money in that status.\t\t\t\t\t Image: Pixels Hunter\/Shutterstock.com
\n\t\t\t\tBy: FEDweek Staff<\/a><\/p>\n

The average balance for a TSP account holder under the FERS retirement system rose over 2025 from about $194,000 to $217,300, while for an account holder under the CSRS system\u2014almost all of them retirees\u2014grew from $220,000 to $240,700.<\/p>\n

A presentation at the January meeting of the TSP governing board added that detail to figures the TSP previously released showing that total assets ended the year<\/a> at $1.07 trillion, up from $963 billion at year-end 2024.<\/p>\n

The presentation meanwhile highlighted information, a tutorial and a calculator being posted at tsp.gov on the Wednesday (January 28) launch of the option<\/a> to convert investments in traditional status (pre-tax on investment, investments and their earnings taxable on withdrawal) to Roth status (after-tax on investment, investments tax-free on withdrawal as are their earnings if certain conditions are met).<\/p>\n

While various restrictions will apply and conversions will be taxable for the year of conversion, it says, benefits would include: \u201cpay taxes now to reduce uncertainty of future tax rates; Roth assets are exempt from Required Minimum Distributions (RMDs); and beneficiaries may inherit tax-free assets (IRS rules apply).\u201d<\/p>\n

Of the $1.07 trillion investment total, $91 billion is in Roth status; just under 3 million of the program\u2019s 7.3 million account holders have some money in that status.<\/p>\n

Officials also noted that a provision of a 2022 tax law is now in effect, requiring that \u201ccatch-up contribution\u201d investments\u2014above the standard investment limit ($24,500 in 2026) for those age 50 during a year\u2014must be made in Roth status for those with 2025 earnings above $150,000.<\/p>\n

Year-end 2025 data presented at the meeting further showed that:<\/p>\n

*\u00a0 The trend toward a net cash outflow that began the previous year accelerated. While during 2024 there was a net outflow of $1 billion as withdrawals and new loans outpaced new investments and loan repayments, in 2025 the net difference was $19 billion.<\/p>\n

*\u00a0 The percentage of investors who have some investment in one or more of the lifecycle L funds rose from 55 to 56, while the percentage who have all of their accounts in one or more rose from 39 to 41.<\/p>\n

*\u00a0 The L 2030 and 2040 funds are the largest in terms and amount on investment, both above $64 billion, while the 2050 fund is the largest in number of account holders, about 1.7 million.<\/p>\n

Senate Coming Down to the Wire on Funding for Most Agencies<\/a><\/p>\n

Forced Distributions for All Coming for Current Ratings Cycle, Kupor Says<\/a><\/p>\n

Average TSP Account Up about $20,000 in 2025; Roth Conversion Option Launching<\/a><\/p>\n

Senate Bill Seeks to Reinstate Regular Telework at VA, Boost Benefits<\/a><\/p>\n

What\u2019s in a Name Change? For DoD, Up to $125 Million and Maybe Much More, Says Report<\/a><\/p>\n

Pending Retirement Applications Top 50K; Bill Offered to Help Those Waiting for Full Benefits<\/a><\/p>\n

See also,<\/p>\n

The Retirement Math Gap: Why Your Current Estimates are Wrong<\/a><\/p>\n

To Join the TSP Millionaires Club, Listen to Current Members<\/a><\/p>\n

How Withdrawal Order Affects Taxes for Federal Retirees<\/a><\/p>\n

What Retirement Date Maximizes My Federal Benefits?<\/a><\/p>\n

FERS & CSRS Calculator: See Your Annuity Estimate!<\/a><\/p>\n

Federal Manager\u2019s Handbook, 7th Ed.<\/a><\/p><\/p>\n","protected":false},"excerpt":{"rendered":"Of the $1.07 trillion investment total, $91 billion is in Roth status; just under 3 million of the…\n","protected":false},"author":2,"featured_media":435034,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-435033","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/435033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=435033"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/435033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/435034"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=435033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=435033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=435033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}