TSP L Fund Allocation: What Each Lifecycle Fund Holds

By DailyFED staffPublished Oct 30, 20263 min read

More than 3 million TSP accounts, 42% of the plan, are invested only in L Funds, and TSP publishes exactly what each one holds.

TSP shared the figure at the October 20 meeting of the Employee Thrift Advisory Council, a panel of federal employee and retiree organizations that advises the plan. L Fund assets totaled $313.4 billion at the end of September, about 27% of the plan.

A pink piggy bank and a black alarm clock beside a notebook that reads TSP Thrift Savings Plan, on a blue background

42%TSP accounts invested only in L Funds, more than 3 million of them

$313.4 billionL Fund assets at the end of September, about 27% of the plan

2.76% vs 14.79%G Fund and C Fund 10-year annualized returns through December 31, 2025

Source: TSP, Employee Thrift Advisory Council meeting (October 20, 2026); TSP, Fund Information Sheets (May 2026).

How Many TSP Participants Use L Funds?

Of more than 7.3 million accounts, 42% are invested only in L Funds. Another 14% hold some L Fund money alongside the individual funds.

What Does Each L Fund Hold?

This is TSP's published mix of the G (government securities), F (bonds), C (large U.S. stocks), S (small and mid-size U.S. stocks), and I (international stocks) Funds as of December 31, 2025:

L Fund	G	F	C	S	I
L Income	67%	5%	14%	4%	10%
L 2030	37%	6%	30%	7%	20%
L 2035	28%	6%	34%	9%	23%
L 2040	21%	7%	37%	9%	25%
L 2045	16%	7%	40%	10%	27%
L 2050	11%	7%	43%	11%	29%
L 2055 to L 2075	1% or less	(G and F combined)	51%	13%	35%

Rows may not add to 100% because of rounding. TSP adjusts the mixes of the dated funds every quarter, so check the L Fund pages on tsp.gov for the latest. To match your target year to a fund, try FFEBA's TSP guide and TSP calculator.

How Do L Funds Change Over Time?

Each quarter, TSP shifts the dated funds from stocks toward the G and F Funds, and it rebalances each fund to its target mix every trading day. When a fund reaches its target year, its money rolls into the L Income Fund.

1
Every quarter
TSP moves each dated L Fund's target mix a step from stocks toward the G and F Funds.
2
Every trading day
Each fund is rebalanced back to its target mix.
3
Target year
The fund closes and its money rolls into the L Income Fund.

Is the G Fund Too Conservative?

Many advisors say it is for people with decades to go. Through December 31, 2025, the G Fund's 10-year annualized return was 2.76%, compared with 14.79% for the C Fund.

TSP's materials show the other side. The G Fund carries no risk of losing principal, and $100 invested in April 1987 grew to $581 by the end of 2025, compared with $291 for inflation. TSP also says investing entirely in the G Fund may not provide the returns you need.

The longest-dated L Funds hold almost no G Fund. The FRTIB's 2025 report on active FERS participants found the youngest hold just 1.35% of their assets in G, while the lowest-paid hold about 31% of their balances there, compared with about 16% for the highest-paid.

Frequently Asked Questions

Which L Fund matches my age?

TSP matches funds to birth year in five-year steps: L 2040 for 1975 to 1979, L 2045 for 1980 to 1984, and L 2050 for 1985 to 1989, for example. You can also choose by the year you expect to start withdrawing.

What happens when an L Fund reaches its target date?

It goes out of existence, and its money rolls into the L Income Fund.

How many TSP participants use L Funds?

Of more than 7.3 million accounts, 42% are invested only in L Funds, and another 14% hold some L Fund money alongside the individual funds.

What does the L Income Fund hold?

As of December 31, 2025: 67% G Fund, 5% F Fund, 14% C Fund, 4% S Fund, and 10% I Fund.

Sources: TSP, Fund Information Sheets (May 2026), with allocations as of December 31, 2025; tsp.gov L Fund pages; FRTIB, 2025 Annual Report of the Thrift Savings Plan, Participant Behavior and Demographics (FERS); Employee Thrift Advisory Council meeting (October 20, 2026).