Understanding TSP rules

The TSP Rules 

There are 2 rules that guide your ability to reallocate within the TSP funds:  

• The 2 Moves Per Month Rule  

• The Noon Rule.  

You have 2 categories of money in TSP:

• The new money you contribute each payday, and  

• The money that is already in your account.  

New contributions are not subject to the noon rule or the 2 move per month rule.

You can change how your new contributions are allocated as often as you like.

Once new contributions are made, they become part of your core account.

Reallocating your core account between TSP fund options IS subject to the noon rule and the 2 move per month rule. 

The Noon Rule  

Changes made between the TSP fund options do not happen in real time. Change requests made before noon Eastern Time will be processed that night after the stock market closes. Change requests made after noon Eastern Time will be made after the following days market close.

For example, if you request an allocation change from 100% C fund to 50% C fund / 50% S fund at 10AM Eastern Time on Friday, your request will be processed that night. If you make the same reallocation request at 2PM Eastern Time, your request will be processed after the close on Monday night.  

The 2 Moves Per Month Rule  

The TSP allows 2 reallocations per calendar month. You can change how your core account is allocated using any combination of C, S, I, F, G, and L funds.

If you wish to make a third or subsequent change in that calendar month, you can ONLY transfer money into the G fund.

Now that you understand these important rules, next we will help you understand a very important topic...risk.

Click the "Return to course" button below and then select your next lesson...see ya there!