Changes

*S (Small Capitalization Stock) Fund—invests in the BlackRock Extended Market Index Fund, which attempts to track the Dow Jones U.S. Completion TSM index.

*S (Small Capitalization Stock) Fund—invests in the BlackRock Extended Market Index Fund, which attempts to track the Dow Jones U.S. Completion TSM index.

*I (International Stock) Fund—invests in the BlackRock EAFE Index Fund, which attempts to track the net version of the MSCI EAFE index.

*I (International Stock) Fund—invests in the BlackRock EAFE Index Fund, which attempts to track the net version of the MSCI EAFE index.

*L (Lifecycle) Funds—invests in a specified mix of the five traditional funds.  Those funds with target years in the distant future have higher percentages of investments in the C, I, and S Funds, and as the target year approaches the percentages shift to investments with higher percentages in the G and F Funds.  As of 2020 there are ten such Lifecycle funds established, the L Income Fund (primarily for retired employees who are withdrawing from TSP, though any TSP participant may invest) and nine funds for future retirees (named in five year increments, with the fund named for the upcoming year designed for employees close to retirement, and the fund named for the most-distant year designed for newer, younger employees; the current names range from L2025 to L2065).  Each fund for future retirees is designed for retirees planning to retire in that year, or two years on either side.  Every five years, in years ending in zero and five, the fund for that target year is merged into the L Income fund (with its assets shifted to those of the L Income Fund), and a new fund established with its name taking on the year 50 years after its establishment (e.g. in 2025 a new fund will be established which will be called the L2075 Fund; the original plan was to merge the L2025 Fund into the L Income Fund and establish the L2070 Fund, but this was changed to do so in July 2024).

*L (Lifecycle) Funds—invests in a specified mix of the five traditional funds.  Those funds with target years in the distant future have higher percentages of investments in the C, I, and S Funds, and as the target year approaches the percentages shift to investments with higher percentages in the G and F Funds.  As of 2020 there are 11 such Lifecycle funds established, the L Income Fund (primarily for retired employees who are withdrawing from TSP, though any TSP participant may invest) and nine funds for future retirees (named in five year increments, with the fund named for the upcoming year designed for employees close to retirement, and the fund named for the most-distant year designed for newer, younger employees; the current names range from L2030 to L2075).  Each fund for future retirees is designed for retirees planning to retire in that year, or two years on either side.  Every five years, in years ending in 0 and 5, the fund for that target year is merged into the L Income fund (with its assets shifted to those of the L Income Fund), and a new fund established with its name taking on the year 50 years after its establishment (e.g. in 2030 a new fund will be established which will be called the L2080 Fund, and the L2025 Fund will be merged into the L Income Fund).

*Beginning in mid-2022, participants have also been offered a "mutual fund index window" which will allow a part (but not all) of contributions to be invested in mutual funds offered by the private sector (it is estimated that around 5,000 such offerings are available).  The FRTIB has been uniformly opposed to politically motivated changes in how TSP's investments are handled (whether they be left-wing proposals to divest from fossil fuel companies, or right-wing proposals to divest from Chinese companies), taking its fiduciary responsibility seriously; the mutual fund window would allow participants greater options such as "green" funds or funds without Chinese investments.  However, only a portion of a participant's account may be invested within the window, and the fees are structured to be very steep so as to discourage investment outside the traditional offerings (as well as to preclude non-participants from subsidizing those costs).<ref>https://www.fedsmith.com/2022/01/27/tsp-mutual-fund-window-more-options-risk-expenses/</ref>

*Beginning in mid-2022, participants have also been offered a "mutual fund index window" which will allow a part (but not all) of contributions to be invested in mutual funds offered by the private sector (it is estimated that around 5,000 such offerings are available).  The FRTIB has been uniformly opposed to politically motivated changes in how TSP's investments are handled (whether they be left-wing proposals to divest from fossil fuel companies, or right-wing proposals to divest from Chinese companies), taking its fiduciary responsibility seriously; the mutual fund window would allow participants greater options such as "green" funds or funds without Chinese investments.  However, only a portion of a participant's account may be invested within the window, and the fees are structured to be very steep so as to discourage investment outside the traditional offerings (as well as to preclude non-participants from subsidizing those costs).<ref>https://www.fedsmith.com/2022/01/27/tsp-mutual-fund-window-more-options-risk-expenses/</ref>

During employment an employee may take out a loan against his/her balance.  Two types of loans are available: a general purpose loan and a primary residence loan; an employee may have either two general purpose loans, or one of each type, outstanding.  The minimum loan is $1,000 and the maximum is $50,000 (a $50 processing fee applies and is included in the loan amount), with terms being five years for the general purpose loan and 15 years for the primary residence loan.  If married the spouse must consent.  Interest is charged at the current G Fund rate of return, and payments are made via mandatory payroll deduction (though additional payments outside of this process may be made).  Once a loan is paid off the employee must wait 60 days until another loan of that type is taken.  If the employee separates from civil service, the loan must be repaid within 60 days or it is considered taxable income.

During employment an employee may take out a loan against his/her balance.  Two types of loans are available: a general purpose loan and a primary residence loan; an employee may have either two general purpose loans, or one of each type, outstanding.  The minimum loan is $1,000 and the maximum is $50,000 (a $50 processing fee applies and is included in the loan amount), with terms being five years for the general purpose loan and 15 years for the primary residence loan.  If married the spouse must consent.  Interest is charged at the current G Fund rate of return, and payments are made via mandatory payroll deduction (though additional payments outside of this process may be made).  Once a loan is paid off the employee must wait 60 days until another loan of that type is taken.  If the employee separates from civil service, the loan must be repaid within 60 days or it is considered taxable income.

An employee also may make withdrawals against his/her balance.  These withdrawals are permanent reductions in the balance, and are subject to tax and early withdrawal penalties if applicable:

An employee also may make withdrawals against his/her balance.  The withdrawal must be at least $1,000 (or, if the account balance is less, the full amount).  These withdrawals are permanent reductions in the balance, and are subject to tax and early withdrawal penalties if applicable:

*Age-based withdrawal: an employee aged 59 1/2 or older may take out up to four withdrawals per year.

*Age-based withdrawal: an employee aged 59 1/2 or older may take out up to four withdrawals per year and need not specify a reason.

*Hardship withdrawal: an employee may take out a withdrawal for one of four reasons (negative cash flow, medical expenses, personal casualty loss, or legal expenses for a marital separation or divorce).

*Hardship withdrawal: an employee may take out a withdrawal for one of five reasons (negative cash flow, medical expenses, personal casualty loss, legal expenses for a marital separation or divorce, or losses resulting from a major disaster which [[FEMA]] must have declared).

If an employee has two accounts, s/he can only withdraw from those associated with active employment.  But if both are active (e.g., an account related to reservist service and one related to Federal employment), s/he can withdraw from both.

If an employee has two accounts, s/he can only withdraw from those associated with active employment.  But if both are active (e.g., an account related to reservist service and one related to Federal employment), s/he can withdraw from both.