More federal employees choose TSP’s L funds

The Thrift Savings Plan is the federal-employee version of a 401(k) retirement savings account. 

The government’s Thrift Savings Plan, the federal employee equivalent of 401(k) retirement savings accounts, saw a continued increase in participants choosing Lifecycle Funds for investments.

Like private-sector “Target Date” funds, the TSP’s L Funds base investment holdings on expected retirement dates.

In 2019, 43% of TSP participants were invested in one of five L Funds, up from 37% in 2018.

All five L Funds posted positive 2019 returns, led by the L 2050, with a 23.33% annual return.

TSP’s star performer in 2019 was the C Fund, or Common Stock Index Investment Fund, whose objective is to match the performance of the S&P 500 Index. Its 12-month return in 2019 was 31.45%.

TSP posts monthly and annual summaries of all its funds online.

TSP ended 2019 with more than 5.8 million participants and almost $633 billion in assets.

The average TSP account balance among participants of all ages at the end of 2019 was $107,775.

Like WTOP on Facebook and follow @WTOP on Twitter to engage in conversation about this article and others.

Get breaking news and daily headlines delivered to your email inbox by signing up here.

© 2020 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

More from WTOP

Log in to your WTOP account for notifications and alerts customized for you.

Sign up