Effective June 30, 2025, the Postal Service™ revised two Lifecycle Funds by adding a new L Fund, the L 2075. Additionally, the L 2025 Fund, having reached its target date, was rolled into the L Income Fund. If you plan to start withdrawing from your TSP account in 2073 or later, or if you were born after 2009, you may consider investing in the L 2075 Fund. Each of the 11 L Funds is designed to help you target the time when you will need your money.
Each of the 11 L Funds is a diversified mix of the 5 individual funds (G, F, C, S, and I). They were designed to let you invest your entire portfolio in a single L Fund and get the best expected return for the amount of expected risk that is appropriate for you.
Every quarter (3 months), the target allocations of all the L Funds except L Income are automatically adjusted, gradually shifting them from higher risk and reward to lower risk and reward as they get closer to their target dates. When an L Fund reaches its target date, it goes out of existence and any money in it becomes part of the L Income Fund, which generally, keeps the same target allocation. For example, in 2030, the L 2030 Fund will be rolled into the L Income Fund.
One of the important things about the L Funds is that they stick to their target allocations for a full quarter, regardless of what the markets do. Every trading day, some of the individual funds in an L Fund will do better than others. The individual funds that did better will make up a higher percentage of the L Fund than the ones that didn’t do as well. To maintain each L Fund’s target allocation, we rebalance it at the end of every trading day. We do this by buying and selling the individual funds that make up the L Fund so that the percentages go back to what they were at the beginning of the day. In effect, we’re buying low and selling high at the end of every trading day.
For more information about TSP FactSheet, go to tsp.gov/fund-performance/#fn01.
— Compensation and Benefits, 7-24-25
