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