TSP Question

[fellowsheep]

Hello,

If I switch my TSP allocation/contribution from G Fund to C Fund, will this violate any BRS policies?

Essentially: Once it is switched, will the military still match me at 5%?

Thank you!

 

[resjudicata]

@fellowsheep You will still get the 5% match and yes please do this. don't forget to switch your future contributions as well as your current allocation it's 2 separate steps.

 

[fellowsheep]

@resjudicata I only changed my “Contribution Allocation”? I don’t see where I can do current and future though?

Thanks for the help!

 

[resjudicata]

@fellowsheep contribution allocations will only change where your future contributions go, you can go to interfund transfers to change what funds the money you already have invested is in.

 

[shamashuruk]

@resjudicata is the match based on trad or roth?

 

[kalashnikovmage]

@fellowsheep The matching is dependent on you contributing the minimum requirement, time in service, and being part of the BRS.

Once you contribute you can allocate however you want within the TSP’s available funds.

I sincerely hope your allocation is not extremely heavy into the G fund like your post makes it sound.

 

[fellowsheep]

@kalashnikovmage I’m actually finding this info for my wife. She’s been allocating 3% into the G fund for 3 years. And I just told her to up it to 6% and switch it to the C fund.

 

[kalashnikovmage]

@fellowsheep Good call on both accounts.

G fund is great at preservation. Not for growing.

 

[jewlyen]

@fellowsheep Someone else already said it, but you'll want her to:
1. Change future allocations to the C fund
2. Do an interfund transfer out of the G fund into the C fund

Neither has any impact on whether you get the match.

If the wife has only been in 3 years, I'd also recommend putting her contribution in the Roth TSP, since her tax bracket is pretty low (unless you're making six figures at your own job). The match will go into the traditional TSP whether she pucks Roth or traditional.

 

[sicarii]

@fellowsheep You can select whichever fund(s) you want, and you’ve obviously done some good research or gotten some good advice if you’re switching from the G to the C. You can do a mix, if you want. I’m 60/40 in the C/S.

I wish I could teach my 22 year old self about compound interest… read this article if you get a chance:

https://www.barfieldfinancial.com/n...s-you-own-the-worlds-greatest-financial-asset

 

[slipknot0129]

@fellowsheep no, that is two different systems.

may i suggest you split your contribution 50%/50% C and S funds. 50%/50% roth and traditional. avoid the lifecycle funds.

the reasoning for 50% roth is once you reach mandatory withdrawals, you have some flexibility using the roth to avoid the next tax bracket.

 

[svetkaelisy]

@fellowsheep The default allocation for new BRS members is no longer the G fund; it's placed into the L funds instead. The only people that are still defaulted to G are those in legacy or who opt-ed in to BRS.

You can contribute to any fund and still get the match, and your contribution can be any contribution type (Traditional or Roth). But the government match will always be placed as a Traditional contribution.

 

[cr0cus]

@fellowsheep Yes! They match all funds. I switched mine from G to C, S and I fund.