Max Out Your TSP in 2012

We've just updated the "Max Out Your TSP" table for the proposed 1.6% military active duty pay increase for 2012. Here's the link.

Here's how you use it. In this example, a Major (O-4) with more than 18 years of service would go to MyPay.gov, select the TSP link, and select 19.8% as their monthly contribution.

Similarly, a Lieutenant Colonel with 16 years of service would contribute 18.2% of their base pay to max out their TSP for the year.

Here are a couple of notes. First, this table assumes that the Congress will approve the 1.6% increase and that the President will sign the bill into law. Second, it assumes that you will want to max out the TSP at $17,000 for the year. If you are older than 50 the max contribution is $22,500. This table does not account for the extra $5,500 catch up provision.

House of Representatives Considers Military Benefits for 2012

On the military benefits front, this week the House of Representatives considered two significant issues for military families and retirees.

The first was a proposed 1.6% military pay increase. This is 0.2% larger than last year's increase, and suggests that Congress understands that the seeds of inflation have been planted through Federal Reserve policies to increase the money supply.

The second was a proposal to freeze Tricare Prime enrollment and other fees for working age military retirees for 2012. This is a very big deal since the Department of Defense has been trying to increase the enrollment fee for this group for years. All military members should thank the veterans groups that do such a great job protecting our benefits, and should consider sending a note to their representatives in Congress requesting their support for this benefit.



Source: Stars and Stripes