• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

US Military

  • Branches
    • Army
    • Navy
    • Air Force
    • Marine Corps
    • Coast Guard
    • National Guard
    • Air National Guard
    • Find A Recruiter
  • Find A Recruiter
  • Military Benefits
    • GI Bill
    • VA Loans
    • Military Scholarships
    • Military Friendly Colleges
    • Money
  • Jobs
    • Military Pay Chart
    • Veteran Jobs
    • Civilian Jobs
  • VA Loan Rates
  • Military News
    • Top News
    • Benefits
    • Careers
    • Education
    • Featured Columnists
      • Larry Fowler
      • Scott Ostrow
      • Kim Lengling
      • Dr. Sasha Toperich
      • Rick Stewart
  • GI Bill
  • VA Loans
  • Military Scholarships
  • Top Military-Friendly Colleges and Universities in America

Enlistment Money And Retirement Issues

February 5, 2008 By admin

Many Servicemembers are aware of the advantage to planning their financial future and retirement. As a Servicemember, the advantages of using the Thrift Savings Plan are many, it is a tax deferred or tax exempt method of growing your savings for that day when you do retire. The Thrift Savings Plan was established by Congress as a 401(K) type retirement investment and savings plan, to closely approximate the type of retirement pensions many corporations provide for their employees.

The Thrift Savings Plan is not mandatory, it is an optional voluntary plan that a Servicemember can utilize to contribute a defined portion of your basic pay. If you contribute up to the allowed amount of basic pay, you then can contribute anywhere from one percent, up to one hundred percent of any special or incentive pay you receive.

Some soldiers are eligible for MOS job TSP Fund matching money. This is an incentive program for soldiers to encourage their savings, where the government will match up to a certain dollar amount any funds contributed by the Servicemember to their TSP account. You can allocate or contribute any amount of your base pay from one to one hundred percent. But you cannot exceed the limit that the IRS places on your contributions, which for the tax year 2006 was fifteen thousand dollars. In order to contribute any of your special or incentive pay you have to give first an amount from your base pay.

When you contribute to your TSP account the money is taken out before any taxes are removed, so it is a type of pre tax savings account. The money in your TSP account is tax deferred, you do not pay any taxes on the money until you take it out, usually at retirement. You are able to split up your TSP investment funds among five different government funds.

Rollover. In many cases if you have other retirement funds in other non-government accounts you are eligible to voluntarily transfer or roll over these funds to your TSP account. This is not mandatory, but is something you may consider if your TSP offers a higher rate of return. Matching. Each of the branches of service can have their Secretary (such as Secretary of the Army, Secretary of the Navy, etc) designate critical job titles. Servicemembers who serve in these jobs are then able to receive matching contributions for any money they contribute to their TSP. To be eligible for this they must agree to serve a six-year enlistment, and this is only available on the first five percent of contributions of base pay.

Filed Under: Money, Updates

Recent Posts

  • How Was Military Time Created And Why?
  • The Best 5 US Military Bases In The World
  • Congrats To Recent Graduates And Is The Military A Great Place For Young People Today
  • The Best Jobs in the United States Army
  • Top 5  Military Home Loans for Active Duty Service Members
VA Loans

Primary Sidebar

IMPORTANT DISCLOSURE

USMilitary.com is a privately owned website and is NOT AFFILIATED (or endorsed) with the U.S. GOVERNMENT, U.S. ARMED FORCES, or DEPARTMENT OF VETERANS

USMilitary.com Career Guide

Sign up to receive USMilitary.com email updates and to hear what's going on with all military branches!

Featured Columnists

Larry Fowler

Larry Fowler is the publisher of USMilitary.com Network one of America's premier privately owned

Autobiography Compares Living Faithfully With Navy SEAL Training (BUD/S).

Scott Ostrow

Lt Col (Dr.) Scott A. Ostrow retired from the Air Force in September 2005 and has been teaching

Congrats To Recent Graduates And Is The Military A Great Place For Young People Today

Kim Lengling

Kim Lengling is a Air Force Veteran whose passion is to help support veterans and their

This Memorial Day: The Knock On The Door

Dr. Sasha Toperich

Dr. Sasha Toperich is the Senior Executive Vice President at Transatlantic Leadership

Sarraj’s Dangerous Dance With Power

Rick Stewart

Rick Stewart is a former United States Air Force Survival, Evasion, Resistance, and Escape (SERE)

Announcing American Patriots Unsung Magazine

Nathan B. Nelson

Capt (ret) Nathan B. Nelson is the Director of Military Affairs for the 1st Congressional district

Three Critical Considerations for Every Veteran Prior to Leaving Active Duty

Laquan Daniels

Laquan Daniel is a military recruiting expert with over 17 years of specialized experience in the

Important News For Military Transitioning Veterans

Veteran Buzz

High-Paying Jobs for Military Veterans

5 High-Paying Jobs for Military Veterans

July 2, 2018 By Ben Ehinger

High Paying Jobs Not Requiring a Degree

June 28, 2018 By Ben Ehinger

7 Best Military Careers That Lead To High Paying Civilian Jobs

June 10, 2018 By larryf

VA Loans

Footer

  • Advertise With Us
  • Privacy Policy
  • Write For US
  • Link to Us

Recent

  • How Was Military Time Created And Why?
  • The Best 5 US Military Bases In The World
  • Congrats To Recent Graduates And Is The Military A Great Place For Young People Today
  • The Best Jobs in the United States Army
  • Top 5  Military Home Loans for Active Duty Service Members

Search

© Copyright 2022 USMillitary
Web Design by Goebel Media Group


THIS IS A PRIVATE WEBSITE THAT IS NOT AFFILIATED WITH THE U.S. GOVERNMENT, U.S. ARMED FORCES, OR DEPARTMENT OF VETERANS AFFAIRS. U.S. GOVERNMENT AGENCIES HAVE NOT REVIEWED THIS INFORMATION. THIS SITE IS NOT CONNECTED WITH ANY GOVERNMENT AGENCY.