I understand that we are allowed 2 Interfund transfers (IFT) per month but I’m confused on whether or not that includes IFTs into the G Fund? Can you please explain?
What is an Interfund Transfer (IFT)?
If you have contributed to your TSP account then you have invested in one or more of the following accounts:
- G Fund
- F Fund
- C Fund
- S Fund
- I Fund
- L Funds
If you want to redistribute your allocations among those funds then you need to do what’s called an Interfund Transfer, better known as an IFT. Keep in mind an IFT does not change your monthly contributions for future deposits into your TSP account.
For Example: You are having a conversation in the break room with a couple colleagues and you discover that the invasion of Ukraine has resulted in sanctions being placed on Russia and therefore the I Fund will most likely lose value over the next 12 months. You decide to log into your TSP account and make an IFT. This IFT will be 100% into the C Fund because that is where you feel your money will prosper over the next 12 months.
How To Make An IFT
You can make an interfund transfer two different ways:
Online – Simply log into your account and on the left hand side you’ll see a menu with the heading “Online Transactions.” Under that subsection you will see a link for “Interfund Transfers”
By Phone – Call the Thrift Line and they will provide all the instructions you need to have someone help you conduct your IFT. https://www.tsp.gov/participantsupport/contact/contactTSP.shtml
Keep in mind IFTs made through the TSP website or on the phone before noon are typically processed that business day. Any IFTs requested after noon are made the following business day.
How Many IFTs Can I Make?
The Thrift Savings Plan has been crystal clear in their policy on interfund transfers:
The first two IFTs of the calendar month can be allocated to any TSP Funds in your account that you choose, this includes a move into the G Fund if you feel it is necessary. After the first two IFTs you make the only other IFT you can make in a calendar month is into the G Fund. Please keep in mind the IFT counts for the month that it is processed, not the month it is requested.
Example: On the 5th of the month you decide to move 100% of your allocations from the I Fund to the S Fund. Then on the 16th you reevaluate your investment thesis and decide you want to move 100% of your allocation into the C fund. Unfortunately on the 26th you watch an episode of Jim Cramer where he states we’re headed for a bear market and you want to move your money to safety right away. You know you’ve already used your two IFTs for the month but the Thrift Savings Plan allows you to make more than two IFTs if the allocations are being transferred into the G Fund.
An Interfund Transfer (IFT) allows you to transfer your fund allocation to another fund twice a month. However, after two IFTs you are allowed to transfer your funds to the G Fund only.