New TSP Funds Coming July 1

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By on June 2, 2020 in Pay & Benefits with 0 Comments

The Thrift Savings Plan has announced that a group of new funds are coming on July 1.

What’s Changing?

One big change is that the L 2020 Fund is being retired since it is now 2020 and that fund’s target date has been reached. Any money remaining in that fund will be rolled into the L Income Fund.

Also, new L Funds are being added so that the target retirement dates of each fund will be separated by only 5 years instead of 10. The TSP says this will allow plan participants to more precisely target the time when they think they will need money in retirement. A total of 6 new L Funds will be added.

Starting July 1, 2020, this will be the new L Fund lineup:

  • L 2065
  • L 2060
  • L 2055
  • L 2050
  • L 2045
  • L 2040
  • L 2035
  • L 2030
  • L 2025
  • L Income

Newly hired federal employees are automatically enrolled in the appropriate L Fund for their projected retirement age. Beginning October 1, 2020, the automatic enrollment percentage will increase from 3% to 5% of pay for all participants who are automatically enrolled in the TSP.

The fact sheet from the TSP below has more details about the upcoming fund changes.

New TSP L Funds: July 2020

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.

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