Over the past several months, I have received more questions about Contribution Allocation and Interfund Transfer than any other topic. The terminology doesn’t seem to make much sense but, once you get the idea, it’s very simple to understand and execute.
My current allocation since May 17th has been 50% C Fund and 50% G Fund. That means I went to www.TSP.gov and did 2 things. After logging in, I completed a Change of Fund Allocation and an Interfund Transfer. The Change of Fund Allocation told TSP where, and in what percentages, I want my new contributions going every payday. The Interfund Transfer told TSP where, and in what percentages, I want the money currently in my account.
I ALWAYS complete both a Change of Fund Allocation and Interfund Transfer at the same time, to the same funds, and the same percentages. If you made the changes on May 17th then your picture should look a lot like mine below.
The Contribution Allocation is the percentage that you set in the Change of Fund Allocation and will always be fixed at what you set.
The Account Distribution is a snapshot of where your current balance is distributed. This will change as the market price of the TSP funds that you’re in change.
I hope this simplifies things things. If you still have questions, please post in comments or hit me on email.