ERISA guy

Thanks. Not sure that's completely comparable. These are tax-exempt funds and not after-tax funds. It appears that a participant in the TSP can choose to designate tax-exempt contributions as either traditional 401k contributions or Roth contributions which governs the tax treatment of the earnings only - the contributions themselves continue to be tax-exempt regardless of designation. As of now, I believe the tax treatment as it stands in the TSP would follow when the funds are transferred to the 401k.

A participant is seeking to transfer or rollover funds from the Thrift Savings Plan. Part of those funds consist of tax-exempt combat pay. I am not seeing any guidance indicating whether an employer-sponsored 401(k) plan can accept transfers or rollovers of tax-exempt funds. If permissible, I think it would need to be separately accounted for as tax-exempt and properly reported as such upon distribution for 1099-R reporting and withholding purposes. Am I missing guidance on this? Any ideas on permissibility and whether it's an eligible rollover distribution? Thanks.