Take another look at your letter. The letter you received is a "request" not a demand. They are requesting that you limit your transfers, and they "may" have you make them by mail if you don't. A bluff. If you read the most recent information, they plan to post the proposed rule limiting IFT's in the Federal Register in March, then there is a 30 day comment period. So there will be NO LIMITS until at least MAY, if ever.
Please re-read the proposed rule as posted in the Federal Register in December, then re-read the TSP FAQ. Also check out the other two threads on this issue in tsptalk.com and TSPSHAREHOLDER.ORG website. The proposed rule gave FRTIB the authority to notify shareholders of "excessive trades" and to request they make trades by email if they make MORE THAN 2 trades per month. THERE ARE NO LIMITS! And if there were, according to the FAQ's, transfers to G are UNLIMITED, so you would NOT be stuck in I Fund, you could still transfer to G at any time, from any fund. But, you could not transfer OUT. That's the "escape valve", according to them. And if it's truly an "escape valve" then G Fund e-IFT's would NOT be locked out. Presumably you would still be able to login but once you got to the IFT screen only the G Fund IFT would be available.
However, at the present time there are no limits. Let's say you are one of "the 3000" and have "used up" your 3 electronic IFT's and find yourself locked out of your account. You could still transfer as many times as you want to any funds you want, but it would have to be done by snail mail...IF, AND ONLY IF, you were locked out of e-IFT. This is the ONLY authority FRTIB has, for now. With the recent SC decision on fiduciary duty I don't think FRTIB is going to lock anyone out.
The "lockout" was obviously a mistake since the member was able to make the transfer later the same day. At this point none of "the 3000" or anyone else has been prevented from making ANY transfers.
