Interfund Transfer Limits

**kawzman** · 09-29-2011, 07:03 PM

First off, I have one ITF remaining for SEP. If I make the ITF before 1200EST tomorrow (30SEP11) will it count towards my ITF limits for SEP or OCT? The TSP website is ambiguous, maybe just to cover themselves but states, "IFTs made on this website or the ThriftLine before 12 noon Eastern time are generally processed as of that business day. Requests made after 12 noon Eastern time are generally processed the next business day." A little further down the webpage they add, "Your IFT counts in the calendar month we process it, not in the month you submit it." The word "generally" is a big word and I don't want the ITF tomorrow to count towards my OCT limit.

Second, has there been any rumors or discussion by the TSP Board about modifying the ITF limits for each month. These limits are rediculous. Going from unlimited to the current limits was quite drastic. It almost seems like they want to handcuff our ability to make money through TSP. I have been thinking about diverting contributions to TSP to something else with no or less restrictions but maintaining my TSP account. Any suggestions? Seems like the fees would add up over time. Is there something out there that's similar to TSP where I can move my money between funds vice individual stocks with little to no fees?

Thanks guys.

**tsptalk** · 09-29-2011, 07:13 PM

Originally Posted by kawzman

First off, I have one ITF remaining for SEP. If I make the ITF before 1200EST tomorrow (30SEP11) will it count towards my ITF limits for SEP or OCT?

September

Originally Posted by kawzman

Second, has there been any rumors or discussion by the TSP Board about modifying the ITF limits for each month. These limits are rediculous. Going from unlimited to the current limits was quite drastic. It almost seems like they want to handcuff our ability to make money through TSP. I have been thinking about diverting contributions to TSP to something else with no or less restrictions but maintaining my TSP account. Any suggestions? Seems like the fees would add up over time. Is there something out there that's similar to TSP where I can move my money between funds vice individual stocks with little to no fees?

Thanks guys.

No rumors. The TSP has no desire to raise the limits again. At least I can't imagine after what we went through. Maybe some new blood in the TSP management might be smart enough to see that charging a small fee per transaction after we hit our limits could benefit the plan.

When I resigned from my gov't position, I moved about 75% of my TSP into a Scottrade IRA. I left some in my TSP just so I still had an account.

There are some funds out there with no transaction fees but I am not sure about the restrictions in trading except that I do know that without a margin account (and a retirement account won't have margin) there are restrictions on transfers depending on a few things, but it's nothing like our TSP limits.

**SkyPilot** · 02-01-2012, 02:20 PM

https://www.tsp.gov/PDF/bulletins/90-26.pdf Not easy to find... interesting to read.

**tsptalk** · 02-01-2012, 02:56 PM

Originally Posted by SkyPilot

https://www.tsp.gov/PDF/bulletins/90-26.pdf Not easy to find... interesting to read.

From that document:

A. Interfund Transfers

1. Number of Interfund Transfers Per Year

Beginning in January 1991, all TSP participants may make an interfund transfer
up to four times in any calendar year, in any months that they choose. The annual
limit is reached after four interfund transfer requests have been made effective
during the calendar year.

**SkyPilot** · 02-01-2012, 05:05 PM

So, even though it is a pain now, it was really a pain then!

**SPN46er** · 02-01-2012, 05:17 PM

I would say the 90s were probably easier with only 4 IFTs. Market did pretty much nothing but go up during the dot com boom, sounds like a buy and holder's paradise. Fast forward a decade and the markets are relatively volatile and move mostly sideways and if we went along with the FTIRB's idea for the TSP that it is a "long term passive investment" then many would probably still be in a hole as far as returns on investment.

**Intrepid_Timer** · 02-01-2012, 05:21 PM

My fiancee' is just starting with a Mutual Of America retirement account at her work. I called them yesterday and they guy said she can make unlimited transfers between the different funds, they are similar to what TSP has to offer, but that the total transferred can not exceed more than $10,000 per month. Never heard of that one! Can't wait for her account to get set up so I can see what's going there......