Q. I’m an active-duty Army officer who finally this July got around to transferring 100 percent of my funds (all in G) into the L2040 lifecycle funds given that they have a much better rate of return and reasonable amount of risk. The total value of my G Fund before transfer was $133,700, composed of $126,468 of contributions and only $7,232 of unrealized gain.
After transfer, the total value of my account remained the same — approximately $133,700. However, it showed that only $91,368 had been used to buy shares in the L2040 fund. Presumably, the difference of $42,332 would be unrealized gains, which doesn’t make much sense to me since I’ve only had my funds there for two months.
I’m wondering why the total value or at the very least, the total amount of contributions (more than $126,000) were not used to invest in the L2040 fund instead? Could you explain, please? I’m still awaiting a response from TSP.
A. The term “unrealized gain” doesn’t apply to the Thrift Savings Plan. I can’t tell you why the numbers used in the transaction are what they are. The TSP will have to explain that.
