Money Monday

first_imgBy Barbara O’NeillWhat types of military pay can be used to make Thrift Savings Plan (TSP) contributions?Maj. Gen. Merdith “Bo” Temple is retiring from the U.S. Army after serving a distinguished 37-year military career.Like all workers with earned income from a paycheck, service members can elect to make Thrift Savings Plan (TSP) contributions from their basic pay. In addition, they can contribute from 1% to 100% of any incentive pay, special pay, or bonus pay to their TSP account as long as they also elect to make contributions from their basic pay. Service members can make this election even if they are not currently receiving incentive, special, or bonus pay, and TSP contributions will be deducted in the future if they do receive such pay.It should be noted that TSP contributions from all types of pay must not exceed the Internal Revenue Service section 415(c) annual addition limit for the year for defined contribution plans ($51,000 in 2013). For more information, refer to this article.Browse more military personal finance blog posts and webinars answered by experts.Follow Dr. O’Neill on Twitter!This post was published on the Military Families Learning Network blog on February 25, 2013.last_img