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More on the Disappearing L2010 TSP Fund

After the July 1, 2010 adjustment in the L 2010 Fund of the federal Thrift Savings Plan, its allocation will be identical to the L Income Fund allocation. However, the money will remain in the L 2010 Fund until the end of December 2010.

Yesterday’s article on the L 2010 fund "turning into" the L Income Fund resulted in my receiving clarifying information from the Thrift Savings Plan (TSP) folks.

The TSP website (on which I based the article) states: "L 2010 will roll into the L Income Fund automatically in July 2010 when its allocation becomes the same as the allocation of L Income Fund." The actual mechanics of the transition are somewhat different.

After the July 1, 2010 adjustment in the L 2010 Fund, its allocation will be identical to the L Income Fund allocation. However, the money will remain in the L 2010 Fund until the end of December 2010.  After that point the L 2010 Fund will "roll-down" into the Income Fund and cease to exist.  The L 2050 Fund will be established in January 2011. 

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

About the Author

John Grobe is President of Federal Career Experts, a firm that provides pre-retirement training and seminars to a wide variety of federal agencies. FCE’s instructors are all retired federal retirement specialists who educate class participants on the ins and outs of federal retirement and benefits; there is never an attempt to influence participants to invest a certain way, or to purchase any financial products. John and FCE specialize in retirement for special category employees, such as law enforcement officers.