TSP questions from a new user

[jeep364]

I am active duty since Summer 2012, have been contributing to Roth TSP (no match) at/near the max allowable contribution since Jan or Feb 2013. Currently have ~38k 100% in L2050.

1. Expense ratio - On tsp.gov it seems to be listed at about .03. I assume that is part of the 'deductions/charges' category on the website? I had about $50 in deductions listed for the year.
2. Dividends - Does TSP give dividends?
3. Dividends - Are they reinvested automatically into the fund?
4. Changing funds - Say I want to jump out into 100% money market (G fund) and then back into an L, C, or S fund. What is the timeline for selling one fund and moving to another? Also, what is the limit - can I do that once a month, once a week, etc?

Thanks

 

[Skorcher]

Hi Jeep,
The answers to the best of my knowledge and tsp.gov:
1. The TSP expense ratio is lower than just about any mutual fund out there. There is no dollar amount withdrawn from your account for expenses. The costs are reflected in share prices.
2 & 3. Dividends from the C, S, and I funds are automatically reinvested in the funds and are reflected in the share prices. Unlike most mutual funds you don't see a quarterly or annual distribution of dividends or capital gains transaction(s).
4. I believe the limitations on interfund transfers are the same for civilian and military. You are allowed two interfund transfers (IFT) per calendar month. A third IFT is allowed only to move 100% of funds to the safe G fund. The daily deadline is noon Eastern time for the IFT to be effective at the close of that trading day.

 

[jeep364]

Hi Jeep,
The answers to the best of my knowledge and tsp.gov:
1. The TSP expense ratio is lower than just about any mutual fund out there. There is no dollar amount withdrawn from your account for expenses. The costs are reflected in share prices.
2 & 3. Dividends from the C, S, and I funds are automatically reinvested in the funds and are reflected in the share prices. Unlike most mutual funds you don't see a quarterly or annual distribution of dividends or capital gains transaction(s).
4. I believe the limitations on interfund transfers are the same for civilian and military. You are allowed two interfund transfers (IFT) per calendar month. A third IFT is allowed only to move 100% of funds to the safe G fund. The daily deadline is noon Eastern time for the IFT to be effective at the close of that trading day.

Thank you for the reply. I will research more about the IFT. Just need to know the right terminology!

 

[jeep364]

imgur: the simple image sharer

What would be the cause of these deductions? I may have gone slightly over the 17,500 limit but from my calculations it doesn't add up to that. Just curious what it might be. Not terribly concerned but just trying to educate myself.

 

[nnuut]

Hi Jeep,
The answers to the best of my knowledge and tsp.gov:
1. The TSP expense ratio is lower than just about any mutual fund out there. There is no dollar amount withdrawn from your account for expenses. The costs are reflected in share prices.
2 & 3. Dividends from the C, S, and I funds are automatically reinvested in the funds and are reflected in the share prices. Unlike most mutual funds you don't see a quarterly or annual distribution of dividends or capital gains transaction(s).
4. I believe the limitations on interfund transfers are the same for civilian and military. You are allowed two interfund transfers (IFT) per calendar month. A third IFT is allowed only to move 100% of funds to the safe G fund. The daily deadline is noon Eastern time for the IFT to be effective at the close of that trading day.

Hey scorcher, under #4 you are allowed unlimited IFTs to the "G" fund after your 2nd IFT.