L2020

[ProduceMan]

What exactly happens to the L2020 fund when it retires?

[Aitrus]

Everybody in L2020 automatically gets rolled into L - Income, which is static and never changes. L2020 then fades away into nothingness.

[ArrieS]

Everybody in L2020 automatically gets rolled into L - Income, which is static and never changes. L2020 then fades away into nothingness.

I thought it was unceremoniously shot out of a cannon.

[ProduceMan]

When you say “rolled over” is that an automatic IFT

[Josiedog]

Every L fund: 2050, 2040, 2030, 2020 changes the percentage of investment every quarter - working towards an L fund investment. If you are in the L2020, it changes quarterly until it becomes an L Fund.

[ProduceMan]

What I’m saying is, (example) the 20 fund is worth $30 and the income fund at the same time is worth only $25. Would your 100
$30 shares just switch to 100 $25 shares. Versus 100 30 dollar shares valued at 3000 automatically (without IFT), turn into 120 $25 shares.

[evilanne]

It would have to be like an IFT from 2020 to L-Income when they close it, which should be your account balance divided by the share price of the L-Income fund to determine how many shares in the new fund. You can always call TSP to verify if and when the situation arises.

[fordest]

It would have to be like an IFT from 2020 to L-Income when they close it, which should be your account balance divided by the share price of the L-Income fund to determine how many shares in the new fund. You can always call TSP to verify if and when the situation arises.

The %s in each fund adjust quarterly. Every quarter without an IFT. Won't they just keep adjusting until they match L-Income? At that point you are in L-Income so it changes name. it doesn't charge you an IFT. I shouldn't think.

[evilanne]

It would be "like an IFT" since the prices are not equal whenever TSP decides to end the 20X0 fund. Answer was based on logic--they can't just decrement your shares to a lower price so TSP would have to make an adjustment that would be similar to how they currently process any IFT, not actually charge anyone holding the expired fund an IFT

[ProduceMan]

I agree with Evilanne, it would have to be LIKE an IFT. Imagine if you had 100 shares of L2020 worth $30 on 31 Dec 2020 then on
1 Jan 2021 you have 100 shares of L Income fund worth $25.

[fordest]

Makes perfect sense I spend so much time thinking about percents I forget these funds actually have a share price. Haha.