Thrift Savings Plans are retirement savings accounts for federal employees and military personnel. A TSP consists of several investment programs or funds. An inter-fund transfer is a feature of TSP programs that allows you to shift money in your account from one investment option to another without incurring penalties or fees.
TSP Inter-Fund Transfer Rules
TSP rules allow account owners to make inter-fund transfers between any funds in any amount twice each calendar year. Additional transfers are allowed, but only into a fund made up of government securities. Typically, TSP programs include funds holding fixed-rate securities, common stocks, small-cap stocks, international stocks and life cycle investments in addition to the government securities fund. Inter-fund transfers affect only money already in a TSP account. You have to request a contribution allocation change to shift future contributions to different funds. Some individuals have both military and civilian TSP accounts. Inter-fund transfers for multiple accounts are entirely separate and do not affect one another.