I work for the USDA, which is a government agency, and they offer a 401(k)-style retirement program called the Thrift Savings Plan (TSP). This program includes employee contributions, agency matching, and an automatic 1% agency contribution (as a gift). When I first enrolled in the TSP, I was unaware that my funds were automatically being invested in the G Fund. I had assumed that all 401(k) benefits provided by the employer were ḥalāl. However, I recently learned that TSP investments can be directed into various options such as bonds, stocks, or cash equivalents.

I have been working with the USDA since 2012, so it has now been 13 years. My concern is whether any of the available TSP investment options are ḥalāl. If any of them are, I would like to know which one I can switch to. If none of the options are ḥalāl, then I may consider unenrolling from the plan. However, I understand that the money will still remain in the TSP account as it is a retirement fund and will continue to be invested regardless.

Specifically, I would like to know: Is the G Fund ḥalāl or completely ḥarām? If it is ḥarām, how can I purify (cleanse) the earnings that were gained through it? Is there any other TSP fund option that is considered ḥalāl which I can switch to?

Below are the 5 funds options available in TSP. Please let me know if any of them are ḥalāl which I can switch too:

1. G Funds - Government Securities Investment Fund Key Features: • The G Fund offers the opportunity to earn rates of interest similar to those of U.S. government notes and bonds but without any risk of loss of principal and very little volatility of earnings. • The investment objective of the G Fund is to ensure preservation of capital and generate returns above those of short-term U.S. Treasury securities. • The G Fund is invested in U.S. Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. government. Thus, there is no “credit risk.” • The interest rate resets monthly and is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity. • Earnings consist entirely of interest income on the securities. • Over long periods of time, the G Fund has historically outperformed inflation and has generated returns higher than those of investments in short-term Treasury securities, although past performance is no guarantee of future results.
2. F Fund - Fixed Income Index Investment Fund Key Features: • The F Fund offers the opportunity to earn rates of return that exceed those of money market funds over the long term, with relatively low risk. • The objective of the F Fund is to match the performance of the Bloomberg U.S. Aggregate Bond Index, a broad index representing the U.S. investment-grade bond market. • The risk of nonpayment of interest or principal (credit risk) is relatively low because the F Fund includes only investment-grade securities and is broadly diversified. However, the F Fund has market risk (the risk that the value of the underlying securities will decline) and prepayment risk (the risk that a security in the F Fund will be repaid before it matures). • Earnings consist of interest income on the securities and gains (or losses) in the value of the securities.
3. C FUND - Common Stock Index Investment Fund Key Features: • The C Fund offers the opportunity to earn a potentially high investment return over the long term from a broadly diversified portfolio of stocks of the largest U.S. companies. • The objective of the C Fund is to match the performance of the Standard & Poor’s 500 Stock Index (S&P 500), a broad market index made up of stocks of 500 large U.S. companies. • There is a risk of loss if the S&P 500 declines in response to changes in overall economic conditions (market risk). • Earnings consist of gains (or losses) in the prices of stocks and dividend income.
4. S FUND - Small Capitalization Stock Index Investment Fund Key Features: • The S Fund offers the opportunity to earn a potentially high investment return over the long term by investing in the stocks of small and medium- sized U.S. companies. • The objective of the S Fund is to match the performance of the Dow Jones U.S. Completion Total Stock Market (TSM) Index, a broad market index made up of stocks of U.S. companies not included in the S&P 500 Index. • There is a risk of loss if the Dow Jones U.S. Completion TSM Index declines in response to changes in overall economic conditions (market risk). • Earnings consist of gains (or losses) in the prices of stocks and dividend income
5. I FUND - International Stock Index Investment Fund Key Features: • The I Fund offers the opportunity to earn a potentially high investment return over the long term by investing in the stocks of companies in most developed countries outside the United States. • The objective of the I Fund is to match the performance of the MSCI EAFE (Europe, Australasia, Far East) Index. • There is a risk of loss if the EAFE Index declines in response to changes in overall economic conditions (market risk) or in response to increases in the value of the U.S. dollar (currency risk). • Earnings consist of gains (or losses) in the prices of stocks, currency changes relative to the U.S. dollar, and dividend income Your guidance in this matter would be greatly appreciated.