Who owns your TSP account’s funds


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.


About Author

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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