The TSP has added details to previously announced changes regarding the available lifecycle L funds and an upcoming option for in-plan conversions of funds from traditional tax treatment to Roth status.
After the close of markets June 27 the lifecycle L 2025 fund will have its final valuation and it will merge with the Income fund. Merging funds into the Income fund as they reach the same investment profile–the target date funds get more conservative over time—previously happened with funds for 2010 and 2020.
As of the end of April, the Income fund—meant for investors who already are retired or who soon will be—was the fourth-largest of the L funds, with some $27 billion in assets. It will remain in that position once combined with the 2025 fund’s more than $11 billion. The 2030 fund is the largest, $56 billion, followed by 2040, $55 billion, and 2050, $45 billion.
