An interfund transfer (IFT) moves the money in your account among the TSP investment funds. When you make an interfund transfer, you choose the new percentage you want invested in each fund. You cannot move specific dollar amounts among the funds. Also, you cannot move specific types of money among the funds. For example, if you have traditional (including tax-exempt) and Roth balances in your account, your IFT will move a proportional amount from each type of money into the funds that make up your new investment allocation.
If you have traditional (including tax-exempt) and Roth balances in your account, your IFT will move a proportional amount from each type of money into the funds that you have specified. The table below illustrates what would happen if you have a $100,000 TSP account in which $90,000 is traditional and $10,000 is Roth, the account is 100% invested in the G Fund, and you want to have 10% of your account in the G Fund and 90% of your account in the C Fund.
|Interfund Transfer: 10% G Fund, 90% C Fund|
|$90,000 Traditional Balance||$10,000 Roth Balance|
|$9,000 ► G Fund $81,000 ► C Fund||$1,000 ► G Fund $9,000 ► C Fund|
Each calendar month, your first two interfund transfers may redistribute money in your account among any or all of the TSP funds. After the first two, your interfund transfers can only move money into the G Fund (in which case, you will increase the percentage of your account held in the G Fund by reducing the percentage held in one or more of the other TSP funds). If you have more than one TSP account, these rules apply to each account separately.
Once you’ve decided on your investment approach, you can make an interfund transfer on the TSP website or the ThriftLine (using the automated system or by speaking to a TSP Participant Service Representative). You will need your beneficiary participant account number (or customized user ID) and your Web password for the website or Personal Identification Number (PIN) for the ThriftLine.
Interfund transfers made on the TSP website or the ThriftLine before 12 noon Eastern time are generally processed that business day. You will receive a confirmation of your interfund transaction.