TSP Contribution Allocations and Interfund Transfers

Allocating and Transferring your TSP balance allows you to invest your well-deserved money into funds and provisions that you want to be in. Both of these actions of allocating one’s investment is accessible via their Thrift Savings Plan Account. The significant difference between both these provisions is that they deal with vastly different money. TSP Contribution Allocations and Interfund Transfers

TSP Contribution Allocations will deal with money that is coming into your account and is mostly accessible during the period in which you’re employed whereas Interfund Transfers deal with your money already deposited and invested into your Thrift Savings Plan.

Let us take a look at each of these provisions:

Contribution Allocations

New money incoming into your account also includes capital that has been transferred into your account from other retirement plans, other provisions, or your agency’s contributions.

You are allowed to change your contribution allocation by adjusting the gross amount of money contributed and how the contributions are allocated and spread out among the funds.

Similar to how private agencies deduct taxable amounts, these contribution allocations are done via your employer’s preferred payroll interface are applicable for all forms of Thrift Savings Plans including both Traditional TSP and Roth TSP. There are no restrictions on the number of changes and alterations you can make to how you plan out your contribution allocations, and they can be made, revised, or changed at any point in time and will not affect existing balance.

However, if you have both a Traditional TSP account and a Roth TSP account, you will not be able to make separate contribution allocations to each account as new contribution allocations will succeed existing ones. Contribution Allocations are done in the following ways:

  1. Online Methods: Visit the TSP account and access your Profile section. From there, go to Contribution Allocations and enter your account number and password to micromanage this.
  2. Telephone: You can also manage your contribution allocations through calling the Thrift Hotline and subsequently inputting your 4-digit PIN.

Interfund Transfers

 An Interfund Transfer reallocates the existing balance that’s already present in your account (the entire amount or part of it) among the different TSP Funds. This kind of a transfer doesn’t affect your future investments and deposits into your future. Interfund Transfers will apply to both Traditional TSPs and Roth TSPs and can be done in the following ways:

  1. Online Methods: Visit the TSP account and access your Profile section. From there, go to Interfund Transfers and enter your account number and password to micromanage this.
  2. Telephone: You can also manage your inter-fund transfers through calling the Thrift Hotline and subsequently inputting your 4-digit PIN.


 Interfund transfers, similar to the contribution allocations can be made at any point in time. However, there are certain limitations to this. One is only allowed to make two inter-fund transfers per month to any TSP fund. The Only exception to this particular restriction is: you can make a third transfer given that you want to move your money into a G Fund.

The reason why these restrictions and confines are set like this is that investment choices should be made considering long term objectives and not short term gratification. These restrictions are also designed to curb frequent trading and the associated cost to its members.

Making a Transfer

As explained before, transfer requests can be made either online or via telephone. These methods will allow your transfer request to be processed efficiently. If you’re doing it online, you will require an ID that has been customized for the user and operate accordingly. On the contrary, if you’re using the ThriftLine – you will need a PIN (Personal Identification Number)

Once you’ve decided on changing your TSP investment plan, you can proceed to submit a transfer request on the Thrift Savings Plan webpage or via their helpline i.e ThriftLine which typically involves talking to a TSP service representative.

Transfers and Contribution Allocations made via website or ThriftLine are processed and passed within one business day if they’re made before noon. Upon this request, you will have received an email confirmation informing you of the affected changes.

TSP Investment Funds

 All of the five core funds, of which four are index funds are managed by Blackrock Capital Advisers – the world’s largest financial planning and investment management agency

  1. The Government Securities Investment (G) Fund: The G-Fund or Government Securities Investment Fund is created to produce a rate of return higher than inflation while simultaneously avoiding exposure to default risks and fluctuations from market prices. This payment of G Fund is guaranteed by the U.S government and is not subject to any default risks due to this particular reason.
  2. The Fixed Income Investment Index (F) Fund:

 The F-Funds or Fixed Investment Index Fund is held in a different account and simultaneously managed to track Bloomberg Barclays U.S. Aggregate Bond Index which includes the U.S Government, corporate, mortgage-backed, and foreign government sectors of the US bond market. The earnings behind F Fund comes from securities and gains (or losses) from the value of the said securities.

  1. The Common Stock Index Investment (C) Fund:

 The C-Fund assets or assets from the Common Stock Index Investment Fund are held in a separate TSP account, managing to have fully replicated certain standards. These earnings consist primarily of dividend income and gains (or loses) calculated from the price of stocks.

  1. The Small Capitalization Stock Index (S) Fund: 

 Created to compete with the performance of the Dow Jones U.S. Completion Total Stock Market Index, the S-Fund or the Small Capitalization Stock Index primarily uses an indexing approach to investing in TSP. In other words, it is a strategy that sticks with its plan regardless of what happens to the market and the economy.

  1. The International Stock Index Investment (I) Fund:

 Created with an Investment objective of matching the MSCI EAFE index, The I fund primarily targets internationally available stocks. It uses an indexing method, that essentially means that it sticks with its plan regardless of what’s happening to the market.

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