The TSP however has had authority for more than a decade to create an investment window, similar to that available through some other 401(k) retirement programs, to allow investors to put at least some of their money in funds other than those the TSP directly offers.
That was a response to the desire of some investors for options beyond the five core funds and the lifecycle L funds that consist of mixes of those funds that differ according to the expected date to begin withdrawals. And it remains a key reason many investors choose to roll their money out of the TSP at retirement into retirement accounts with more options.
The TSP has said that it expects to begin offering that option
in the middle of 2022 once it brings online a new record-keeping system that will allow for it; the current one doesn’t.
That will offer access to potentially
thousands of outside funds from mutual fund companies and other financial companies. Environmental/social responsibility funds will be among those, but only as one new option out of many.
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