The Thrift Savings Plan (TSP) is moving ahead and launching new Lifecycle funds on July 1, 2020.
The new funds will be labeled in this way:
- L 2025
- L 2035
- L 2045
- L 2055
- L 2065
At the same time, the current L 2020 fund will be retired. The funds in the L 2020 Fund will be automatically moved into the L Income Fund. TSP investors who want to use the newly created funds will be able to transfer money into these funds starting in July.
Here is the schedule for starting up the new funds:
- Internet fund transfers for L 2020 will be halted at 12:00 pm (noon) on June 30, 2020
- New L Funds will be available to participants at 12:01 pm on the (same day)
- Internet fund transfers into new funds processed that night and will appear on July 1, 2020
The money TSP investors have in the L 2020 Fund will go into the L Income Fund. Investors who wish to move any of this money into the new Lifecycle funds will be able to do so starting on July 1, 2020.
In effect, there will be a number of additional Lifecycle funds available to investors. All of the existing Lifecycle funds will still be available (with the exception of the L 2020 Fund). The difference is that investors will be able to put money into funds with a 5-year timeline instead of a 10-year timeline.
Some of the other changes to the funds are highlighted in this article on TSP fund changes.
