Q. My concern about the impact of a federal debt default on TSP accounts is that my account would be subject to bankruptcy as a federal government asset, and therefore be reduced to something like $0.10 on the dollar. Are the funds mine or those of the federal government?
A. The contents of your TSP account are not a federal government asset and would not be subject to the risk you describe. The assets in your account are held in trust for you. Since the G Fund is a security that is guaranteed by the federal government, this asset — while still an asset in trust — could be affected by credit risk.
