Why hasn't the TSP already placed restrictions on the number of interfund transfers that a participant can make each month?

Before the TSP moved to the daily valued record keeping system, participants were limited to 12 interfund transfers a year -- one per month. When we decided to introduce daily valuation, we understood that some participants might trade more frequently. We decided not to limit the interfund transfers unless a problem developed.

In the past two years -- particularly in the past 6 months, however, the adverse effects of frequent trading have become more pronounced. Because the Federal Retirement Thrift Investment Board has a fiduciary responsibility to all of its participants to keep costs low, the decision was made to put restrictions in place. More.

Before the TSP moved to the daily-valued record keeping system, participants were limited to 12 interfund transfers a year one per month. We decided not to limit the interfund transfers unless a problem developed. In 2007, however, the adverse effects of frequent IFT requests became more pronounced.

Because the Federal Retirement Thrift Investment Board has a fiduciary responsibility to all of its participants to keep costs low, the decision was made to put limits in place. More.

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