Thrift Savings Plan

[SilentSnake]

From my understanding the Navy will match dollar to dollar on the first 3% and fifty cents to your dollar of the next 2% of your basic pay that you invest in the TSP if you are in certain specialty rates. My question is do they match TSP contributions for SWCC?

[swcc-wife]

The military does not do matching contributions.

On the TSP website, it states, "As of the date of this Web edition, matching contributions had not been authorized by any of the uniformed services."

But, considering the fact that things do change, maybe they have since started.

I'll see if I can find out a definitive answer for you.

[SilentSnake]

Thanks SWCC-Wife.."As of the date of this Web edition, matching contributions had not been authorized by any of the uniformed services."

I saw this too, but then I read somewhere else, and i'll try to find the site, that certain 6 year rates are now authorized to receive matching contributions.

[swcc-wife]

Yes, I read that as well, but it is a pilot program the Army is (was) trying for new recruits.

"As another benefit to service members, the Army is testing a program where the service matches soldiers’ contributions to TSP, Johnson said. This program only applies to new enlistees who fill critical specialties. The Army will match 5 percent of the pay the Soldier contributes to TSP; the first 3 percent will be matched dollar for dollar, and the next 2 percent matched 50 cents on the dollar, he said."

That was pulled from this article http://www.navy.mil/search/display.asp?story_id=26974

[swcc-wife]

This was pulled from the TSP website

"The law that extended the TSP to the uniformed services allows the secretary responsible for that service to designate critical specialties for matching contributions. Members serving in these specialties who agree to serve on active duty for 6 years may be eligible for matching contributions. The matching contributions are made during the 6-year active duty obligation. If you are eligible to receive matching contributions, your service will match your basic pay contributions dollar-for-dollar on the first 3 percent of basic pay you contribute and 50 cents per dollar on the next 2 percent of pay per pay period."

Maybe it's that it is allowed, but none of the branches of service have implemented it (except for the Army test program).

I'll try and find out for sure.

[bowtieman81]

Snake, I looked into the thrift savings plan too. From my research it looks like the military does not do any matching. I can transfer my current 401K into the TSP, and I can contribute out of my paycheck but they do not match at all. It's a bummer.

By the way, good luck Wednesday!

[SilentSnake]

This was pulled from the TSP website

"The law that extended the TSP to the uniformed services allows the secretary responsible for that service to designate critical specialties for matching contributions. Members serving in these specialties who agree to serve on active duty for 6 years may be eligible for matching contributions. The matching contributions are made during the 6-year active duty obligation. If you are eligible to receive matching contributions, your service will match your basic pay contributions dollar-for-dollar on the first 3 percent of basic pay you contribute and 50 cents per dollar on the next 2 percent of pay per pay period."

Maybe it's that it is allowed, but none of the branches of service have implemented it (except for the Army test program).

I'll try and find out for sure.

Thanks SWCC-Wife, you certainly are a wealth of information and help on the SWCC forum. It is a bit confusing the way they throw the information out there. Guess I was just being optimistic :) and hoping. I report to RTC this week so I probably won't see your reply. Thanks for the help though.

[SilentSnake]

Snake, I looked into the thrift savings plan too. From my research it looks like the military does not do any matching. I can transfer my current 401K into the TSP, and I can contribute out of my paycheck but they do not match at all. It's a bummer.

By the way, good luck Wednesday!

It is a bummer....it wouldn't amount to that much, but free money is always welcome, especially when it comes to compounding. Oh well, you can still put unlimited tax-free money in there to my knowledge, and then along with you regular income being put in there pre-tax it will drop you to a low tax bracket. Which, i'm not sure is completely a great thing, since there may be a chance you'd withdrawal it down the line at a higher tax bracket! Either way it looks to be a great program where the returns have been good, especially if you just stick mark a good portion of your $ to the S&P 500, which historically has been around a 10.5% return.

Pete you're so damn close to getting that contract....next time take a watch with you and just bust it. Maybe try to get MA2 to run with you. Best of luck shipmate!

[swcc-wife]

You are more than welcome. I've got a little over 8 years of being a Navy wife under my belt, and not once in those 8 years did I have anyone to answer the many questions that I had. I came across this site purely by chance, and once I saw that I had an opportunity to share the information that I had attained over the years, well, I jumped on it. I'm glad that I can be of help to you guys :)

On another note, there is a limit of $46,000 for those serving in a combat zone (tax exempt). It is called the "elective deferral limit".

And, look into the L Fund. It automatically allocates your funds into the G,F,C, and S Funds, depending on your retirement year. And, as you get closer to retirement, it readjusts the allocations to lower your risk. It's pretty cool.