- Obtain your TSP account number.. If you don’t have your TSP account number you will need to request that it be sent to you via mail. In order to do this, you must login to the MyPay website (https://mypay.dfas.mil/mypay.aspx), click on TSP on the main menu. Once you are on this page, scroll all the way down and update the address to your current mailing address. This is also the page where you can change and see how much you are currently investing. Once you have updated your address. Go to TSP.gov and click on “Forgot account number” in the top left of the page. This will require you to enter your social security number. This process is a request that your account number be sent to the address you have entered into MyPay. You should receive your number in the mail within 10 days.
Friday, May 4, 2012
Take Charge of Your TSP
The overwhelming majority of members I have spoken to about TSP do not know how much they are contributing, what funds they are investing in, or the balance of their account. This is partly due to the cumbersome and frankly unacceptable process for getting an account number and password. However, there is a process, and every member should take responsibility in investing for their future and their family’s future.
Let’s fix this problem. Below are the steps for obtaining your TSP account number, your password, the basic steps for changing the amount you invest into TSP and how to see or change the funds you are investing in.
Monday, March 26, 2012
More on Roth TSP
According to a recent federaltimes.com article, the Roth TSP option should be offered starting in late April to early July. Below is some good information regarding contribution limits and other basics of the new offering courtesy of myfederalretirement.com.
Roth TSP is not a Roth IRA
Unlike a Roth IRA, there are no income restrictions on contributions to the Roth TSP feature. Any participant who is eligible to contribute to the TSP can make Roth contributions. Also, Roth TSP contributions are subject to different contribution limits than Roth IRAs. In 2012, you can contribute up to $17,000 (plus $5,500 if you are 50 or older) to your Roth TSP,* while you can only contribute $5,000 ($6,000 if you are 50 or older) to a Roth IRA. (If you are eligible to contribute to a Roth IRA, making Roth contributions to your TSP account will not affect your Roth IRA contribution limits.) [* The combined total of Roth and traditional contributions cannot exceed these limits.]
How does Roth TSP work?
Any contribution allocation or interfund transfer will apply to the investment of both your Roth and traditional contributions or balances. You will be able to transfer Roth 401(k), Roth 403(b), and Roth 457(b) (but not Roth IRA) money into the Roth balance in your TSP account. Pre-tax transfers will continue to be placed in your traditional balance. You will be able to take loans, in-service withdrawals, and partial withdrawals from your account as before. They will come out of your account on a pro rata basis -- with a proportional amount from your traditional and Roth balances. When you withdraw your account, you will be able to separately transfer any portion of your Roth and tra¬ditional balances to IRAs or other eligible employer plans.
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Roth TSP is not a Roth IRA
Unlike a Roth IRA, there are no income restrictions on contributions to the Roth TSP feature. Any participant who is eligible to contribute to the TSP can make Roth contributions. Also, Roth TSP contributions are subject to different contribution limits than Roth IRAs. In 2012, you can contribute up to $17,000 (plus $5,500 if you are 50 or older) to your Roth TSP,* while you can only contribute $5,000 ($6,000 if you are 50 or older) to a Roth IRA. (If you are eligible to contribute to a Roth IRA, making Roth contributions to your TSP account will not affect your Roth IRA contribution limits.) [* The combined total of Roth and traditional contributions cannot exceed these limits.]
How does Roth TSP work?
Any contribution allocation or interfund transfer will apply to the investment of both your Roth and traditional contributions or balances. You will be able to transfer Roth 401(k), Roth 403(b), and Roth 457(b) (but not Roth IRA) money into the Roth balance in your TSP account. Pre-tax transfers will continue to be placed in your traditional balance. You will be able to take loans, in-service withdrawals, and partial withdrawals from your account as before. They will come out of your account on a pro rata basis -- with a proportional amount from your traditional and Roth balances. When you withdraw your account, you will be able to separately transfer any portion of your Roth and tra¬ditional balances to IRAs or other eligible employer plans.
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Saturday, February 25, 2012
A Trip to Navy Boot Camp
I recently traveled to Recruit Training Command in Great Lakes to attend a Navy boot camp graduation and besides being a welcome blast from the past for me; I was able to talk to several new Sailors. The more things change, the more they stay the same. Here are a few lessons I learned (or confirmed) from talking to them.
Newly issued uniforms come with holes in the pockets: For many of these young warriors, this is the first time they will be making a steady paycheck, be covered by health and insurance and have excellent job security. As many of us can remember, having money for the first time is a great reason to spend it. It seemed that one of the top priorities on many of their lists, after hugging mom and dad, was to go shopping. New shades, new clothes, new stuff! When a Sailor leaves Great Lakes they usually have about a month worth of paychecks waiting for them, and it seemed like it would not be there long for many. If you are heading to boot camp, have a plan and stick to it. You should reward yourself after the hard work you completed, but perhaps putting some money into an emergency fund or cleaning up some debts you had before you joined would be a smarter idea.
Thrift Savings Plan is an outstanding option, start contributing now: RTC is doing an outstanding job of speaking with our young Sailors about investing in their future by putting money into TSP. Investing into TSP has become much easier in the past few years with their upgraded website where you can now quickly change allotments and research different investment options. It is a great way to start saving for your retirement. It is an excellent idea to set up an automatic allotment now instead of putting it off. Also, the TSP Roth IRA option will be here soon. Read “A New Recruit Saving for Retirement” for more information on TSP and how to start contributions.
Many still don’t know their benefits: I still remember what I was thinking while sitting through RTC’s finance and benefits classes several years ago. “Keep your eyes open, I wonder how long until chow?, my RDC looks really angry, keep your eyes open.” It is understandable that many recruits come out of training with a relatively low level of understanding of their benefits. To many young Sailors these topics are boring, but it is essential to understand all of your pay and benefits. My suggestion is when you are out of the inherently stressful setting of boot camp, you should sit down with someone you trust and talk it over with them. Fleet and Family Service Centers or your Command Financial Specialists are both great resources.
Many new Sailors are already planning on doing something else: Aside from the usual topic of finances, I must mention something that struck me while meeting these new Sailors. Many of them are already planning on pursuing a different job in the Navy then what they signed up for! While the Navy offers many opportunities for advancement and options to pursue different career paths, there is importance in excelling at your job before considering another path. If you are going to join the military, do your homework and really learn what job you want to do. Don’t just go by the brief explanations on the internet, find someone who does that job and ask tough questions about it, make your recruiter work for you. Once you commit to it, do it well. If you work hard for the Navy, it will work hard for you. You are a newbie, show the Navy you are a hard working self starter and the possibilities are endless.
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Newly issued uniforms come with holes in the pockets: For many of these young warriors, this is the first time they will be making a steady paycheck, be covered by health and insurance and have excellent job security. As many of us can remember, having money for the first time is a great reason to spend it. It seemed that one of the top priorities on many of their lists, after hugging mom and dad, was to go shopping. New shades, new clothes, new stuff! When a Sailor leaves Great Lakes they usually have about a month worth of paychecks waiting for them, and it seemed like it would not be there long for many. If you are heading to boot camp, have a plan and stick to it. You should reward yourself after the hard work you completed, but perhaps putting some money into an emergency fund or cleaning up some debts you had before you joined would be a smarter idea.
Thrift Savings Plan is an outstanding option, start contributing now: RTC is doing an outstanding job of speaking with our young Sailors about investing in their future by putting money into TSP. Investing into TSP has become much easier in the past few years with their upgraded website where you can now quickly change allotments and research different investment options. It is a great way to start saving for your retirement. It is an excellent idea to set up an automatic allotment now instead of putting it off. Also, the TSP Roth IRA option will be here soon. Read “A New Recruit Saving for Retirement” for more information on TSP and how to start contributions.
Many still don’t know their benefits: I still remember what I was thinking while sitting through RTC’s finance and benefits classes several years ago. “Keep your eyes open, I wonder how long until chow?, my RDC looks really angry, keep your eyes open.” It is understandable that many recruits come out of training with a relatively low level of understanding of their benefits. To many young Sailors these topics are boring, but it is essential to understand all of your pay and benefits. My suggestion is when you are out of the inherently stressful setting of boot camp, you should sit down with someone you trust and talk it over with them. Fleet and Family Service Centers or your Command Financial Specialists are both great resources.
Many new Sailors are already planning on doing something else: Aside from the usual topic of finances, I must mention something that struck me while meeting these new Sailors. Many of them are already planning on pursuing a different job in the Navy then what they signed up for! While the Navy offers many opportunities for advancement and options to pursue different career paths, there is importance in excelling at your job before considering another path. If you are going to join the military, do your homework and really learn what job you want to do. Don’t just go by the brief explanations on the internet, find someone who does that job and ask tough questions about it, make your recruiter work for you. Once you commit to it, do it well. If you work hard for the Navy, it will work hard for you. You are a newbie, show the Navy you are a hard working self starter and the possibilities are endless.
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Sunday, February 12, 2012
Get Ready for Roth TSP
The Roth TSP option is on its way, its time to start thinking about what will benefit you.
http://www.federaltimes.com/article/20120209/BENEFITS02/202090301/1041/BENEFITS
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Saturday, January 7, 2012
Post 9/11 GI Bill Transfer to Dependants
Many Sailors still have question about wether they are eligible to transfer their GI Bill benefits to their dependants. Here is the link to the va.gov website that specifically answers this question. They have recently edited the language to make it more clear.
http://www.gibill.va.gov/benefits/post_911_gibill/transfer_of_benefits.html
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http://www.gibill.va.gov/benefits/post_911_gibill/transfer_of_benefits.html
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