Starting June 30, 2025, the Thrift Savings Plan made changes to the Lifecycle (L) Funds.
The TSP will now have eleven L Funds which are designed to help participants target the time when they’ll need their retirement savings.
A new L Fund, the L 2075, was added. TSP participants that plan to start withdrawing from their TSP account in 2073 or later, or if they were born after 2009, can consider investing in the L 2075 Fund.
Additionally, the L 2025 Fund, having reached its target date, was rolled into the L Income Fund.
What Are L Funds?
Each TSP L Fund is made up entirely of the five core funds — G, F, C, S, and I—in different proportions. The L Funds are target date funds, meaning they automatically adjust as you get closer to the time you plan to retire.
When your target date is far in the future, you can take more risk, seeking greater reward, because you have time to recover from any market downturns before you’ll need your money. When your target date is close, you may want to be more conservative with your investments. To make that gradual adjustment on your own, you’d have to regularly shift the money in your TSP account from the more aggressive C, S, and I funds to the more conservative G and F Funds. The L Funds do that work for you.
The years in the names of the L Funds are the target dates. The L Income Fund is for people who have already reached the target date. It’s generally the most conservative of the L Funds.
Many TSP participants, especially those newer to the plan, were invested automatically into the L Fund most appropriate for their age.
More information about the L Funds can be found here.
