UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: BinkleyBT Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 37486  
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 2:19 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
The total amount generally cannot exceed $10,500 for the year. Contributions from pay earned in a combat zone will not count against the $10,500 ceiling.
Combat zone contributions will be subject to a different limitation, however, 25% of pay or $35,000, whichever is less.

Contributions to the plan come from "pre-tax" dollars. Servicemembers will pay no federal or state income taxes on contributions or earnings until they're withdrawn.


This year I had less than 10,500 in taxable income thanks to thanks to 8 months of tax free CZTE pay. This will be a recurring pattern for me, so I could just put all my taxable income in the TSP (pre-taxes) and live off my income from the tax free months, and I don't pay taxes for the whole year. That would be fun to do just to say I did it.

Binkley
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next

Announcements

Invest Better Hub
Take advantage of our newest free service, Invest Better!
New Fool-Branded Credit Card Available!
How does your card compare to ours?
Post of the Day:
Supernova Phoenix 1

When Does the Party End?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Facebook Fool Fan Club
Be a fan of the Fool over on Facebook!
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Get the Fool Phone App
Save and share content, zero in on sectors, podcasts, and much more!
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement