Deployment + Matching

[flightrn]

I'm a reservist with plans to deploy this September with the goal to max the contribution for 50K.

My civ TSP contributions were planned to reach the 17K max by August. Once my mil pay starts in Sept I'll be attempting to reach the 50K limit allowed for those who are deployed in a combat zone.

I called TSP.gov today and nobody could say with any degree of certainty whether I would be elgible for the retro active matching from my civilian agency since I would have maxed out 17K early; however, they understood that my contribution limit will increase since I'm deploying to a combat zone, thus if I continue to pay into my mil TSP for the months of Sept - Dec I might be elgible to recieve the 5% retroactive match.

I'd hate to miss out of 4 months of matching, but with my situation I thought this was the best way to get close to the 50K limit.

[Jahbulon]

Thank you for your service.

That will be freaking awesome!

[Relevant]

Isn't all or most of your military pay excluded from income tax while in a combat zone? If so, why would you want to put already tax free money into your TSP to have it taxed when you withdraw it later as ordinary income? Unless you are an O-6 or better I'm not seeing any tax advantage. Am I missing something?

[GT-NMSU]

Invest your TAX free money into the ROTH TSP, get it tax free NOW and never pay taxes LATER. Best option IMO. I heard the DOD was not going to allow RTSP until mid July-ish, you should have time before Sept. to change which account your contributions go into.

[flightrn]

Good point Relevant, I forgot to mention the ROTH TSP medium that GT-NMSU interjected. Indeed, this is an awsome opportunity - tax free income, tax free growth, tax free withdrawl.
I'm still working my agency's HR for an answer regarding my elgibility to receive retroactive matching for the months of military contributions after maxing my civ limit of 17K.
I'll post my results, stay tuned.

[houston]

Well when I see my tsp statements, it shows that the money put in while deployed seperately so it shouldn't get taxed again when withdrawing.