Good write up- apparently they intend to KEEP the 2 transfer limit. In addition, the proposal appears to offer ONLY mutual funds, and to limit anyone’s market “window” to be no more than 25% of your TSP portfolio.
That certainly wasn’t the intent of the initial Congressional request for a market window.
Write NOW to ask for change- ask for at LEAST one additional move.
From the story above:
“Participants who invest in the mutual fund window will pay a $95 annual maintenance fee; a per-trade fee of $28.75; fees imposed by the specific mutual fund in which the participant chooses to invest, which will vary by fund; and a fee aimed at ensuring “the availability of the mutual fund window will not indirectly increase the share of TSP administrative expenses borne by participants who choose not to use the mutual fund window.”
Traditionally, the TSP charges participants a pro rata share of the agency’s administrative expenses, but the agency said that will no longer be sufficient to cover the TSP’s overhead when participants begin moving their money between core funds and the mutual fund window. As a result, mutual fund window users will be required to pay an annual fee of $55, and will be updated every three years.
The agency also will limit both how much and how little money participants can transfer between core funds and the mutual fund window. In order to join the mutual fund window, participants would be required to make an initial transfer of at least $10,000, and participants must have a minimum TSP balance of $40,000 to become eligible to invest in the mutual fund window. TSP participants may not invest more than 25% of their total balance in mutual funds.
Additionally, any transfers to or from mutual fund investments would count toward the maximum of two interfund transfers allowed in a calendar month. After those two transfers, which could also include transfers across the TSP’s core funds, any transfer must be into the government securities (G) fund.
The TSP is soliciting comments on these proposed rules between now and March 25.”
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