VictoriaF wrote:For me, the G fund acts as Golden handcuffs. Upon retirement, I would like to move my assets from the TSP to a Vanguard IRA and then do Roth conversions. But the G fund is difficult to give up.
That's a good plan, Victoria, and I can definitely understand some of your reluctance.
Years ago I actually moved my traditional IRA accounts into
the TSP due to the favorable tax treatment I would receive from my state on future withdrawals. Since I'll only have to pay federal tax (and most likely at the same marginal tax rate as I would today) there's no sense in my converting those funds...
...but that benefit allows us to take advantage of partially converting my wife's tIRA yearly so that it'll be fully converted by the time I need to take an RMD from the TSP, and do so without paying additional state tax. Win-Win.