TSP transfer rules


Q: I am close to retirement in the Civil Service Retirement System and will transfer my Thrift Savings Plan investments from the C and S Funds to the G Fund to be safe. My question is in the transfer of funds: Is it the amount of shares that is transferred from one fund to another, or is the value of the fund used to purchase shares in another fund?

For example: the S Fund with 2,000 shares at $19 a share is worth $38,000. The G Fund is worth $13.50 a share. Will the 2,000 shares transferred to the G Fund be worth $27,000 ($13.50 each)? Will the $38,000 buy me about 2,814 shares in the G Fund? I understand that I cannot continue to contribute to TSP after retirement. The answer will help me decide whether to roll over the money, convert it to an annuity or not touch it until I turn 70 1/2. If I leave the amount in TSP, will I be able to continue transfers even though I am not contributing?

A: Interfund transfers are completed in dollar amounts, which is the only way it can be done because the various fund shares have different prices. You may continue to manage your account and complete interfund transfers for as long as the account contains assets.


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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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