TSP funds not mutual funds


Q: I retired 8 years ago and I check my Thrift Savings Plan account monthly. One day it occurred to me that these funds don’t operate like your usual mutual fund. The quantity of shares in my C Fund and G Fund haven’t changed since I retired. Don’t these funds throw off any cash, as in dividends, interest or capital gains? In a mutual fund, you would receive a cash payment or reinvest in more shares. What does TSP do with the cash received?

A: The TSP’s fund share prices include the value of all earnings from the underlying securities. They do not distribute cash payments.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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