TSP Trade Restrictions Begin

Submitted by ellenc on May 1, 2008 - 11:43.
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April 30, 2008

Thrift Savings Plan participants will be allowed to shift their money between funds only twice a month beginning May 1.

The Federal Retirement Thrift Investment Board, which oversees TSP, made the controversial interfund transfer restriction official in an April 24 Federal Register notice. The board said last November that more than 3,700 participants were moving their investments frequently — sometimes on a daily basis — and driving up processing costs for the rest of TSP’s nearly 3.9 million participants.

All but 549 frequent traders curbed their activities earlier this year after the board sent letters asking them to stop. Those who did not lost their ability to trade online April 1 and had to mail in their transfer requests. The board will restore their access to online trading once the restrictions are in place in May.