This TSP Window Is Looking Like An Open And Shut Case

You can’t walk up to the mutual fund window at the Thrift Savings Plan, and put cash on a granite counter. It’s virtual. Regardless, it’s in danger of closing.

Part of the problem is how few TSP account holders are actually using it to move a portion of their TSP. One reason for that could be that the window entails costs to the investor. You’ve got to pay a $55 annual administrative fee, a $95 annual maintenance fee, and a stiff $28.75 per trade. Plus, as the TSP points out, the mutual funds themselves typically come with fees of their own.

Converting part of your TSP to any of the mutual funds is procedurally intensive, too.

More fundamentally, the TSP brochure writers note, “If you choose the mutual fund window option, the first risk to consider is whether your investments in mutual funds will grow enough to offset the additional fees.” If the TSP funds track the various indices, and they generally do, the window doesn’t present a particularly compelling case. Click HERE to read more.