The Military Wallet

Can You Get a Montgomery GI Bill Refund?

Ryan — Fri, 10 Sep 2010 15:21:45 +0000

I signed up for the Montgomery GI Bill (MGIB) when I enlisted in the military. Like many military members and veterans, I haven’t had the chance to use all of my MGIB benefits yet. Part of the reason is because the military has a generous Tuition Assistance (TA) program. I completed a year of college before I enlisted and I used Tuition Assistance to complete my bachelor’s degree while I was on active duty. The only time I touched my GI Bill was to get a top up when I started a Master’s Program (TA only covers up to a certain dollar limit per semester hour and the Master’s classes exceeded that limit). So it was GI Bill to the rescue!

What happens if you don’t use your GI Bill Benefits?

Unfortunately, the Montgomery GI Bill is pretty much a use it or lose it benefit. In most cases you will lose your Montgomery GI Bill Benefits if you don’t use them within 10 years of separating from the military. The Post-9/11 GI Bill expires 15 years after you separate – just one of many reasons why you should make the switch if you are eligible!

If you aren’t eligible for the Post-9/11 GI Bill and your 10 year time limit has already passed, then you may be out of luck. I’m coming up on 4 years since I separated from the USAF, so I have to start making plans if I want to use my GI Bill benefits.

Can You Get a Refund on Your Montgomery GI Bill?

We receive several common questions about GI Bill benefits – primarily about losing GI Bill benefits, transferring GI Bill benefits, and getting a refund for GI Bill benefits if the benefits are not used. In most cases, the answer is no, you cannot get a refund for your GI Bill.

The Montgomery GI Bill usually works like this: You have one chance to buy in to the MGIB when you join the military service. If you opt in, you pay $1,200. Then you can use your MGIB benefits while on active duty or with 10 years from the time you separate from the military (there are some exceptions to the time limits, particularly if you rejoin the service or are recalled to active duty; this will restart your clock). You typically lose any portion of your MGIB that you do not use within the 10 year time limit, and there are usually no refunds.

MGIB Refunds Available for Post 9/11 GI Bill users

There is an exception to the no refund policy for the Montgomery GI Bill. You can get a refund of your $1,200 buy-in if you are eligible for the Post 9/11 GI Bill, you elect to use those benefits instead of the Montgomery GI Bill you bought into, and you use the entire Post 9/11 GI Bill benefits.

From the GI Bill FAQ Page:

Q: Do I get a refund of the $1,200.00 buy-in for the Montgomery GI Bill?

A: Any individual who paid the $1,200.00 buy-in for the Montgomery GI Bill and elects to use the Post-9/11 GI Bill may be refunded a proportional amount if, and after all entitlement under the Post-9/11 GI Bill is used. Individuals who do not use all their entitlement under the Post-9/11 GI Bill will not receive a refund of contributions paid under the Montgomery GI Bill.

How does the Montgomery GI Bill Refund work?

Based on my understanding, you have to be eligible for the Post-9/11 GI Bill, elect to give up your MGIB benefits and switch to the Post-9/11 GI Bill, use all your Post-9/11 GI Bill benefits, and request a refund.

Of course, there is some fine print: You will receive the MGIB refund with your final BAH payment, which means you must be attending an in-residence program (veterans attending college via online eduction are not currently eligible to receive BAH benefits through the Post-9/11 GI Bill program). If you are primarily taking online courses, then I recommend taking at least one class at a local university, even if it doesn’t specifically apply to your program – you can still declare another major. The only purpose of taking that class is to get he $1,200 refund.

The MGIB refund is also prorated based on the amount of Montgomery GI Bill eligibility you have remaining. For example, if you didn’t use any of your Montgomery GI Bill benefits, you should receive the entire $1,200 refund. If you used 1/3 of your MGIB benefits, you may only receive $800 back, etc. However, I am not 100% certain on the formula used, and the VA rep I spoke with on the phone mentioned he would have to run the query on a case by case basis. Please contact the Department of Veterans Affairs for more information specific to your situation.

This is a great benefit for veterans who are eligible for the Post-9/11 GI Bill. Just keep in mind the requirements: you must use 100% of your Post-9/11 GI Bill to be eligible, you must be receiving BAH during your final month of GI Bill eligibility, and you will receive a prorated refund if you used any portion of your MGIB benefits.

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Family Supplemental Subsistence Allowance

Ryan — Thu, 09 Sep 2010 14:37:47 +0000

The Family Supplemental Subsistence Allowance (FSSA) is a supplemental income program for military members designed to reduce or eliminate the need for servicemembers to use the Food Stamp Program. It was established in May of 2001 to supplement eligible military member’s Basic Allowance for Subsistence (BAS). FSSA is a nontaxable allowance payable in addition to all other pays and allowances.

Family Supplemental Subsistence Allowance

FSSA is designed to bring the military member’s household income up to 130% of the federal poverty level, as established by the United States Department of Agriculture (USDA). The current maximum payable rate is $1,100 per month, not to exceed 130% of the poverty level. *the maximum benefit is an increase from $500, and is in effect as of June 2010.

Family Supplemental Subsistence Allowance Eligibility

All active duty military members, including those serving overseas, may be eligible for the program, depending on the service member’s income and size of family. To be eligible, military members must be receiving BAS, meet the FSSA gross income guidelines for household size as determined by the USDA, and must have applied and been certified at a certain payment level by the appropriate office. The program is especially designed to help large military family households.

How income is calculated for FSSA purposes: “Military income” for the FSSA includes basic pay, BAS, basic allowance for housing, or cash equivalent for those that are living in Government provided housing, overseas housing allowance, all bonuses, and all special and incentive pays.

Other income earned by family members may also count toward your application. Some examples include: spouse’s wages, earnings, or salary, commissions and tips, self-employment income, interest and dividend income, alimony and child support, unemployment benefits and workers compensation benefits, veteran benefits, annuities, pensions, and other retirements benefits, and other potential income.

Bonuses and provisions not counted as income for FSSA purposes: The following sources of revenue shall not be counted as military income: Hostile Fire/Imminent Danger Pay, Continental United States Cost of Living Allowance (COLA), overseas COLA, Family Separation Allowance, all travel and transportation related allowances and entitlements and clothing allowances.

Other income not counted toward family income include income from students under age 18, loans, grants, and scholarships, income tax refunds, insurance settlements, reimbursements for medical and dental care, and potentially other income.

Check with your local finance office for more information regarding income qualifications.

How to apply for Family Supplemental Subsistence Allowance

Military members must apply with their respective service which will make all decisions regarding eligibility and the amount of entitlement. They will also provide final certification for payment to include the entitlement start date.

Eligible military members receiving FSSA must recertify each February or any time they receive a promotion, accept a Permanent Change of Station (PCS), their family changes in size, or their monthly household income increases by $100 or more. Members may apply for recertification up to 30 days before or after an event without losing their eligibility, otherwise their eligibility will be terminated and their application will be treated as a new application.

To Apply: The application is web based and must be completed from a DoD computer: http://www.dmdc.osd.mil/fssa/

For more information, please see the official DoD Financial Management Regulation which can be found in the following pdf: DoD 7000.14-R, VOLUME 7A, CHAPTER 25 – “SUBSISTENCE ALLOWANCES”. (paragraph 2502; updated June 2010).
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Ohio Veterans Bonus Program

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Ohio Veterans Bonus Program

Ryan — Wed, 08 Sep 2010 18:59:42 +0000

Ohio recently created a Veterans Bonus Program to thank Ohio Veterans who served during periods of conflict. Eligible veterans serving on active duty (except active duty for training) anywhere in the world during the specified dates may receive $50 a month up to a maximum bonus of $500.

Eligible veterans who served in the Persian Gulf, Afghanistan, or Iraq during certain dates may receive a $100 bonus for each month they served in those locations, up to a maximum of $1,000. An eligible veteran may combine their service bonuses for a maximum payment of $1,500.

Ohio Veterans Bonus Program Details

Who is Eligible for the Ohio Veterans Bonus Program?

Ohio veterans may be eligible for the bonuses if they served on active duty in the US armed forces, including those who served in the Ohio National Guard, if they served in the specified locations during specific time periods for reasons other than training (information about eligible locations and dates is below).

To be eligible, applicants must have been legal residents in Ohio when they went on active duty and must be Ohio residents when they apply for the bonus.

To be eligible for the Ohio Veterans Program Bonus:

The veteran must have been separated from the armed forces under honorable conditions.

The veteran remains on active duty service.

After active duty service, the veteran remains in any reserve component of the armed forces, including the Ohio National Guard.

Eligible Service Dates and Locations

Eligible veterans may receive $100 for each month of active duty service in the following locations during these specified dates:

Persian Gulf: Between August 2, 1990 and March 3, 1991, the date when Iraq accepted the conditions for a permanent cease fire. Eligible veterans can apply for a bonus until December 31, 2013.

Afghanistan: Since October 7, 2001. Eligible veterans can apply for a bonus for up to three years after the President declares an end to U.S. involvement in Afghanistan.

Iraq: Since March 19, 2003. Eligible veterans can apply for a bonus for up to three years after the president declares an end to U.S. involvement in Iraq.

The maximum benefit for service in those three areas is $1,000.

Eligible veterans may also apply for a $50 bonus per month they served during these time periods if they served anywhere else in the world. The maximum bonus under these provisions is $500 and the bonuses may be combined for a maximum of $1500.

Families of deceased Ohio veterans may also be eligible for bonus. There also are other bonuses available to eligible veterans or the families of deceased veterans. For these eligibility details and specifications, please visit: veteransbonus.ohio.gov/odvs_web/Eligibility_Requirements.aspx

How to claim the Ohio Veterans Bonus

To apply for the bonus, applicants should go to veteransbonus.ohio.gov, and complete the online application. You may also visit a public library if you do not have internet access or visit your local Ohio’s County Veterans Service Office for assistance.

Application must be signed, notarized and mailed. The final application must be printed, signed, and notarized or acknolwdged before it will be accepted. Mail your application to Ohio Veterans Bonus, P.O. Box 373 Sandusky, Ohio 44871.

The estimated processing time for Ohio Veterans Bonus Program applications is approximately eight weeks, depending on the volume of applications initially received.

Applicants with specific questions can call 1 -877-OHIO-VET or go online at: veteransbonus.ohio.gov.

Please help spread the word

Please forward this information to any Ohio veterans you may know. Those who have been separated from the military for several years may not be aware of this benefit.
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Benefits of Consolidating Financial Accounts

Ryan — Thu, 02 Sep 2010 12:09:37 +0000

Managing personal finance can be a difficult task, especially when trying to juggle multiple financial accounts. Just remembering the user name and password for multiple sites can be a chore, much less learning each site’s user interface, remembering where your assets are located, setting up a system to automate investment contributions bill pay, etc.

There are great options for almost any kind of banking and/or investment service, but sometimes it’s better to go for the big wins and choose the 90% solution to simplify like and money management. With this in mind, you may find it easier to consolidate your financial accounts. Let’s take a look at some of the benefits of account consolidation.

Consolidating Financial Accounts

Benefits of Consolidating Bank Accounts

It is not uncommon to have multiple bank accounts. I primarily use USAA, but also have an online savings account with SmartyPig because they have the highest interest rates in the US at the moment (but don’t offer a full banking service so I can’t use them for everything), I have an ING Direct account which I use for many online transactions and as a bridge to my PayPal account, and since USAA doesn’t offer business account, I have a business checking account at a local bank and an online business savings account for higher interest. I have 3 personal savings accounts and 2 business accounts, which certainly isn’t simple, but is much better than before!

Why have multiple bank accounts? There are a few reasons to have multiple accounts – convenience of the branch location, high interest rates, low fees, free ATMs, free checking, and other banking features.

Why more isn’t always better. The problem with multiple accounts is that it spreads your money out and if you aren’t careful, you can lose track of your savings, bounce checks, get overdraft fees, etc. The likelihood of making financial mistakes or even tracking errors increases with each new account you add. So while it may seem like adding new accounts can make you more money, it may end of costing you money – especially if you manage your money with a spouse or partner because multiple accounts creates another barrier for communication.

Benefits of consolidating bank accounts. Fewer bank accounts are easier to monitor and can often result in higher interest rates, lower fees, and other perks. It also makes it easier to communicate with someone who helps you manage the finances, reduces the number of statements and tax forms you receive each year, and makes it easier, in general, to manage your finances.

Benefits of Consolidating Investment Accounts

Investment accounts are similar to bank accounts – there are many great brokerage accounts that offer different benefits – low trading fees, no management fees, ability to link directly to your bank account, etc. The problem, again, comes from being able to quickly and easily manage your money.

Here are some benefits of consolidating your brokerage and investment accounts:

Ease of tracking investments. It is easier to track and manage your investments when they are in one location, as opposed to several. This makes it easier to track investment performance and perform asset allocation.

Track changes. Investment firms may change their fee and commission structures, add new account features, offer free training seminars, or other changes. The fewer companies you have to remain up to date with, the easier.

Special perks. The more money you have in your investment account, the more benefits you may receive from the investment firm. This can be in the form of lower fees or commissions, personalized investment advice or service, free trades, and other benefits.

Note about consolidating 401k plans and the Thrift Savings Plan: You may not be able to consolidate your 401k plan or Thrift Savings Plan if it is active, but you may be able to do so once you are no longer actively contributing to it. Here is some information about doing a 401k rollover into and IRA and options for your TSP when you leave the service.

Research your financial options, then decide on the best all around solution(s)

There is no one size fits all solution for either banking customers or investors, thought there are some companies that offer a 90% solution. Examine your banking needs, and try to reduce the number of banks you have down to the best 2 or 3 solutions (I understand the convenience of a local bank or the lure of higher interest payments!). But it is rare that you might need more than 2 or 3 personal bank accounts (business accounts are in a different category).

The same thing goes for investing. Examine your investing needs and habits and try to determine if one of your accounts will offer the best solution, or if you need multiple accounts. Many people can easily reduce their non-retirement investment accounts down to 1 or 2 investment firms, often a discount broker for cheap individual stock trades and a mutual house firm where you can buy low cost mutual funds. Here is a comparison between the two types of firms for a better understanding: best companies for an IRA. (The article was written about IRAs, but it applies to non-retirement accounts as well.

Take a few minutes to examine your options and find a solution. Managing your money is much easier once you consolidate your financial accounts!
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Being a Military Veteran and Retiring Abroad

Ryan — Fri, 27 Aug 2010 09:25:04 +0000

I think one of the largest groups of Americans who decide to retire overseas are military veterans. It makes perfect sense on many levels. Many military veterans have spent considerable parts of their career living abroad, they may speak two or more languages, and have grown accustomed to life overseas, particularly in the developing world. Living back home in America may seem boring and slow, or you may just decide you want to try something new.

Regardless of your reasons for considering overseas retirement, you should take some time to make the decision before jumping in with both feet. Here are some pros and cons. Keep in mind this is just a top level overview – just enough to get your thinking about it. If you think overseas retirement might be for you, then I recommend doing further research.

Benefits of overseas retirement for military members

Retiring abroad is a great option for military veterans. Unlike most Americans they will have usually have a guaranteed pension on top of their social security benefits. This can mean a retired military veteran faces a retirement in relative wealth compared to most Americans, and extraordinary wealth compared to other people if the veteran decides to live in a poorer, developing country.

Benefits of formal visa programs. Many countries, particularly poorer ones in Southeast Asia and Latin America have formal retirement visa programs under various names and guises. These visa programs have reduced or no taxation for retirees on a pension, allowing you to save considerable money over many parts of the United States. The requirements of these can vary substantially from country to country, but in general you must not have a criminal record, you must show signed proof of your pension, you must show proof that you have private healthcare, and you must be over a certain age. You will typically apply for the visa stateside and apply through the nearest consulate or embassy of the country you wish to move to.

Expat communities. Many countries have entire communities populated by retired ex-patriots. No, we’re not calling you unpatriotic, that’s just a term for someone who chooses to live in another country! The benefit of these communities is a greater sense of home and a shared experience. It is much easier to make the transition to living overseas if you are around people who are in a similar situation – you can share experiences and help each other when needed.

Downfalls and risks of retiring overseas

Drawbacks to retiring overseas. As any experienced expat knows, while there are many benefits to living overseas, there are drawbacks. You cannot export an American lifestyle overseas without substantial expenses. You will deal with inefficient businesses and bureaucracies, far worse than in America. You may deal with a lot of crime. You may see a lot of poverty. Healthcare may be cheap, but it might not be as high of quality. You may be far away from your loved ones and friends.

Risks of retiring abroad. While retiring abroad is being portrayed in the media as a way to garner a wealthy lifestyle for pennies on the dollar, it is still fraught with risk. The cheaper the country you move to, the poorer and potentially dangerous the country. A poor country is at best financially unstable, and at worst politically unstable. Do research on the history and the government of the country you decide to move to before moving.

Advice for those consider overseas retirement

My advice to any veteran considering moving overseas to retirement is to make use of the skills and instincts that allowed you to prosper in previous foreign residences. Be cautious, and keep a low profile. Americans are hated in some parts of the world, and in others mildly disliked. Don’t make waves.

From a financial perspective my most general advice is to maintain some kind of address or contact back home for bills and banking relationships. Keep the bulk of your money in America rather than investing locally. And always have a plan for quickly leaving the country if trouble seems to be stirring.

About the author. Rick Todd writes at Expat Investing, where he writes on living working and retiring overseas from a financial perspective.
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Veterans Advantage Card Benefits Program

Ryan — Thu, 26 Aug 2010 09:16:17 +0000

The Veterans Advantage Card Benefits Program is a nationwide benefits program developed in 2001 to provide rewards to the members of those who have served in the United States Military including active military members, retired veterans, members of the National Guard and Reserves, as well as the family members of eligible service personnel.

The companies which have partnered up with the program provide preferred pricing on products and services to show their appreciation of military members. Companies that participate in the program range from a wide spectrum of categories including travel, entertainment, home, office, health, business, and financial. There are also benefits offered by both the federal government and participating state governments.

Veterans Advantage Card Benefits Program Review

Eligibility. There are no limitations on the time period of service, the branch of the military, or the rank of the individual to participate in the program. The Veterans Advantage Program offers benefits nationwide to active members and Veterans based on a membership plan. There are three option available for membership and pricing ranges from a one-year membership at $59.95 to a five-year membership at $199.95. Interested individuals can also start a 30-day free trial membership. Trial memberships can be canceled at any time. Family members interested in participating can be enrolled for half the price of a regular membership. Gift memberships are also available for purchase.

Plan Benefits

In addition to the many discounts and preferred pricing options for members, each plan also includes:

Act now and get your 30-day FREE trial

Save thousands: Enjoy everyday savings nationwide

Special Insurance coverage: Up to $55,000 insurance coverage at no extra charge

Prescription Drug Discounts: up to 65% off medication at no extra charge

Free $25 Gift Card with your full membership

Personal Attention: Toll-free member support number plus online help

Members will receive a Veterans Advantage ID card in the mail accompanied by a benefits booklet that outlines the programs benefits and lists the many US corporations that participate. Just some of the national companies include:

Thrifty Car Rental

1-800-PetMeds

T-Mobile

AT&T

Dunkin Donuts

Dell

Apple

Continental Airlines

Overstock.com

Barnes & Noble

Greyhound

Target

State and Federal Benefits

Every state and even some municipalities offer a variety of benefits for program members. There are also federal benefits provided through the card and Veterans Advantage members will receive a compilation of State, Local and Federal Benefits online and sent by e-mail so they can remain informed and up to date.

The program’s website (http://www.veteransadvantage.com/) offers extensive information about the rewards program and provides 24/7 member support services online or by phone. Each month, a new partnership company is put in the spotlight that showcases the discounts being offered by the many participating retailers and businesses. Additionally, there are various resources, articles, and news topics to benefit Veterans, active members, and family members available on the website. Enrollment in the annual membership or 30-day trial program can be completed online and activated instantaneously.

Is Veterans Advantage Worth It?

There is a large variety of participating partners that can make this plan worthwhile, especially since family members can participate. For a few dollars a month, the annual membership can save members on services they normally use and on brand name products they buy. The Veterans Advantage website also features testimonials from other members and a toll free phone number for customer service questions. The 30 day free trial membership may be the best resource for determining whether the program is worth the annual fee.
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Thrift Savings Plan Begins Automatic Contibutions for New Employees

Ryan — Wed, 25 Aug 2010 10:19:36 +0000

The Thrift Savings Plan (TSP) recently announced it will begin automatic TSP contributions for new employees. Federal employees who are part of the Federal Employees’ Retirement System (FERS) and were hired after July 31, 2010 will be automatically enrolled in the TSP with an automatic contribution of 3% of their basic pay, which will be automatically deducted from the employee’s pay each period and deposited into the Thrift Savings Plan. This is in addition to the Agency Automatic Contributions of 1% of total base pay and will make employees eligible for Agency Matching Contributions.

Employees have the option of opting out of automatic plan participation by simply opting out when they are hired. In addition, TSP members can start, stop, or change contributions at any time by using their agency’s or service’s electronic system, or by filling out form TSP-1 (civilian TSP) or TSP-U-1 (uniformed services).

Civilian employees under FERS also have the opportunity to earn make additional Thrift Savings Plan contributions from their base pay to receive Agency Matching Contributions. Civilian TSP members who contribute at least at least 5% of their basic pay to their TSP account can receive the full amount of agency matching contributions.

Benefits of automatic Thrift Savings Plan contributions

Many employers in both the public and private sector have discovered many people believe that retirement plans are a great idea, but the employees often don’t take the time to sign up for the benefits. Companies that offer an automatic enrollment have seen a surge in plan participation, as most people opt to leave the contributions in place. In most cases, this is a great idea because automatic contributions make it easy to start saving money.

If you have the opportunity to start investing in a the TSP or a similar plan such as the 401k, then go for it. You would be surprised at how easily you can adapt to the slightly lower paychecks. Since the contributions are made before taxes, your paycheck actually decreases by a lower amount than you are contributing. For example, if you are contributing $100 per month, you might only see a difference of $65 in your paycheck because federal and state taxes haven’t been withheld from your contributions. Your TSP contributions will then grow without the drag of taxes holding them back until you make withdrawals in retirement age. Overall, this is a simple way to save money for retirement.

Other Thrift Savings Plan changes

The Thrift Savings Plan recently announced plans to add the TSP Roth 401k option, which is similar to a Roth 401k plan commonly found in many public sector jobs. The benefits are similar to a Roth IRA when it comes to how the contributions and withdrawals are taxed (contributions have already been taxed, and withdrawals are made tax free). The difference however, is that Roth IRA eligibility is based on income, and Roth IRA contribution limits are lower for IRAs that the 401k or TSP plans. The Thrift Savings Plan Roth 401k option will be a great investment opportunity for both civilian and military members alike.
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Roth 401K for Thrift Savings Plan (TSP)

Ryan — Tue, 24 Aug 2010 10:38:43 +0000

Good news for Thrift Savings Plan (TSP) participants – the Thrift Savings Plan will begin to offering a Roth 401(k) option in 2011. In June 2009, President Obama signed the the Thrift Savings Plan Enhancement Act 2009, Public Law 111-31 which gives the Thrift Savings Plan the authority to offer a Roth 401k option. It will take the agency some time to set up the infrastructure and bookkeeping capability, so the launch is not expected until 2011.

If you think that a Roth 401K TSP sounds like some sort of hybrid retirement plan then your guess would be absolutely right! The Thrift Savings Plan Roth 401K is actually a merger of two of the popular retirement plans currently available; the Roth 401K, and the Thrift Savings Plan.

The Roth 401K is typically used by individuals in the private sector and the Thrift Savings Plan is reserved for government employees, including those working for the government under civilian programs and the DoD, and for those in the armed forces. The Roth 401k Thrift Savings Plan puts the best part of both plans in one new retirement option.

What is the Roth 401k feature for the Thrift Savings Plan?

A Roth 401(k) feature for the Thrift Savings Plan combines the benefits of a Roth savings plan with the TSP retirement savings plan. Instead of making contributions before paying taxes like you currently do with the TSP (and paying taxes when you withdraw the money), you will pay taxes now and make tax free withdrawals in retirement. This means your Roth savings will grow without the drag of taxes because your contributions have already been taxed. You will not pay any federal income taxes on your withdrawals so long as you meet Roth withdrawal eligibility guidelines – typically age 59½ and have been making Roth contributions for a minimum of 5 years.

TSP Roth 401k eligibility

Another benefit adopted from the Roth 401K plan is an absence of income limitations for plan participation. Anyone can contribute towards this retirement plan regardless of how much money they make. This differs from Roth IRA contribution limits which are tied to income. The TSP Roth 401k contribution limits will be the same as all TSP contribution limits, regardless of whether you invest in the Roth option or the traditional option. Contribution limits can be found here.

Benefits Associated with the Roth 401K

Here are some benefits you should expect to see with the Roth 401k plan:

Contributions are made after taxes have been withdrawn.

There are no taxes on withdrawals from a Roth 401K so long as you meet withdrawal eligibility requirements.

There are no income restrictions on regarding who can contribute to a Roth 401K, so you can contribute regardless of income level.

Deployed contributions to Roth 401k for TSP could be huge

I’m a big fan of investing in the TSP while deployed because of the tax benefits – you don’t pay income tax on the money you contribute and the portion you contribute while deployed can be withdrawn tax free, giving traditional TSP contributions similar rules to Roth 401k contributions. The difference is the tax free portion of your withdrawals will be prorated across all regular TSP withdrawals, and there are minimum distribution requirements. A Roth 401k feature will eliminate the necessity to track which portions of contributions and withdrawals are tax free, and there are no minimum distribution age requirements. This makes the Roth 401k TSP feature much more flexible. You don’t get taxed on income and you can make tax free withdrawals in retirement. It doesn’t get any better than that!

Should you invest in the Thrift Savings Plan 401k option when it is available?

This could be a great opportunity to save some money with great tax benefits,though it may not be the ideal situation for everyone. You should look at your investment goals, tax obligations and other factors before making the decision to switch from the traditional TSP plan to the Roth 401k, or consider contributing to a hybrid approach and making a portion of your contributions to each plan so you can diversify your tax liability in retirement. Generally, if you are in a low tax bracket, or you have tax free deployment income, then you might want to consider the Roth 401k TSP feature. If you are in a higher tax bracket and don’t have tax free income, then the tax situation should be similar to deciding whether or not you should invest in a 401(k ) or IRA. The previous link should be helpful in making the decision.
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Unemployment Benefits After Separating from the Military

Ryan — Mon, 23 Aug 2010 15:12:05 +0000

Did you know that many military veterans are eligible to receive unemployment benefits when they separate from the military?

Transitioning from a military career to a civilian career is a big step. Not all jobs transfer over from the military and it can be difficult for civilians to understand how much military members bring to the table in terms of experience, leadership and many other attributes. It is not uncommon for military members to struggle when seeking civilian employment.

Thankfully, there are benefits that can help you bridge the gap between military and civilian careers. Service members who are no longer active in the military have the same unemployment benefit options available to them as other Americans. I applied for unemployment benefits when I separated from the military, and I encourage you to do the same if you are eligible.

Unemployment benefits for military veterans

Unemployment compensation may be available to ex-military personnel. If eligible, military members will receive compensation from the Unemployment Compensation for Ex-service members (UCX). This program is run by the federal government, but each state has their own agents representing the UCX. Whether or not you are eligible and how much compensation you will receive depends on several factors. If you receive other compensation (separation pay, retirement pay) the amount of compensation for which you may be eligible will be reduced. Here we look at how you can go about signing up for unemployment compensation and what you can do before separation to get your finances in order.

Signing up for unemployment benefits

Since each state is in charge of unemployment benefits paid out to residents of the state, this is the starting point for signing up for compensation. The state unemployment office will be able to determine if you are eligible to receive benefits, how long you can receive benefits and how much compensation you will receive. You must apply through the state employment office which will also help you in your search for new employment. When visiting the state employment office to inquire about benefits be sure to have the following documents on hand; job history or resume, Social Security Card and DD Form 214 (Certificate of Release or Discharge from Active Duty).

A couple quick notes about military unemployment benefits:

Federal law requires that you are physically in the state in which you file your first claim based on military wages. You can file in the state in which you separate from the military, but you may need to transfer your unemployment benefits if you move to another state (be sure to check with the employment bureau in the state where you move).

Unemployment benefits for former military members is usually based on military service wages, however, separation pay or military retirement pay may affect your benefits.

In most cases, you must have been separated under honorable conditions to be eligible for unemployment benefits.

Each state may have unique rules or provisions. Check with your state employment office for specific information.

Prepare your finances before separation from the military

A well padded emergency fund can provide the financial security necessary during a time of transition from one job to another. Service members who are planning to transition from military to civilian status should plan on saving as much money as they can to help bridge any gaps in employment. It took me about 4 months to find a job when I made the transition from the military to civilian workforce, but your results may vary depending on the economy where you separate, your skills, and other factors. Unemployment benefits helped, but I was also single and had few expenses. If you have a family and more expenses, then you will need a larger nest egg to help you through this transition.

Having enough money to cover several months worth of living expenses will offer some peace of mind until you are able to secure your next job. Consider saving your money in a high interest savings account which will offer a decent interest rate while still providing access to your money.
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GM Military Discount Program

Ryan — Fri, 20 Aug 2010 01:45:24 +0000

General Motors offers eligible military members a military discount program for GM vehicles. The GM military discount program allows eligible military members to purchase vehicles at prices lower than MSRP. It’s important to note that GM dealers are not required to participate in the GM military discount program, but in this economic environment, my guess is that most dealers will be willing to work with you and offer discounts for your military service.

General Motors (GM) Military Discount Program

GM Vehicles eligible for GM Military Discount

GM dealers are working hard to clear inventory from their lots. As a result, most 2010 and 2011 GM cars, SUVs, crossovers and light-duty trucks are eligible for the GM Military Discount Program except the Chevrolet Volt and all Cadillacs.

GM Military Discount Eligibility

People eligible for the GM Military Discount include active duty members and Reserves of the U.S. Air Force, Army, Navy, Marines, National Guard, and Coast Guard.

How to get your military discount from GM

Visit gmmilitarydiscount.com to request your “Go Code” and bring it and your military ID to your salesperson at your GM Dealer to receive your vehicle discount.

How good is the GM military discount program?

I ran a few vehicles through the military discount price list to compare the regular MSRP to the military price. There were a few deals better than others. I don’t think it’s a bad idea to try and get additional discounts with this program – but right now you should be able to do much better than the listed prices from their price list. Many dealerships are hurting to move inventory and are willing to make deals.

Save more money with USAA, AutoCircle, and GM

USAA GM Discount

You can save even more money if you are a USAA member. GM and USAA have teamed to offer an additional $750 discount (this offer is subject to change, but it is worth investigating!). In addition, you can try USAA’s new car buying service, USAA Auto Circle. Auto Circle is an iPhone app that is basically a one stop shop for your car buying needs. You can research the best value in cars, find a no hassle “buy it now” price, and even insure your car right from your iPhone. Android and Blackberry apps are currently in work.

More information about the GM military discount program: Please see the GM Military Discount Rules and Guidelines or the FAQ section for complete details .
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