Jughead
-
Posts
643 -
Joined
-
Last visited
-
Days Won
11
Content Type
Profiles
Forums
Gallery
Blogs
Downloads
Wiki
Posts posted by Jughead
-
-
Here's my Roth question:
OK, so starting in 2010, Traditional IRAs can be converted to Roth IRAs regardless of income, with the taxable amount treated as income in the year converted (but without any tax penalty); those converted in 2010 (only) can have the taxable amount spread out over 2011 & 2012. Got it--good news for anyone who believes in the Roth (me) but has money in a Traditional that for whatever reason couldn't formerly be put in a Roth (also me).
One catch: there's still an income limit for making contributions to the Roth. If I assume I'll hit that limit again (which I will in years without > ~3 months CZTE), I can't make the Roth contribution, so I put it in the Traditional. But, wait... what's to stop me from immediately converting that to a Roth? And, if I can do so, what's the point of having the limit in the first place?
I'm confused.....
-
I've got about 20k in my TSP. Is it possible to roll this cash from my TSP into a Roth IRA while still on active duty or do I have to wait until I retire or separate?
No--unless you're 59 1/2 or older. Only hardship or age-based withdrawals are available while on active duty (and in this context, the rollover you want is included in the term "withdrawal"). If you have any tax exempt contributions to your TSP, those are not eligible for rollover treatment (whether age-based or after separation). https://www.tsp.gov/forms/tspbk08.pdf
If I can roll it over while on AD, is there any benefit to doing so in a combat zone? I understand that under normal conditions I would pay income tax on the 20k I'm rolling over. However, does the CZTE benefit apply to an IRA rollover and negate taxes? I'm assuming no and that it would only be excluded from income tax if it was earned in non-income tax conditions but someone correct me if I'm wrong.Moot point, since you can't do it--but, my understanding of how the CZTE works would be as you say, and any such taxes would still be due. You'd still have the advantage of (potentially) being in a lower tax bracket due to CZTE and therefore paying lower taxes on the conversion....
-
TIB is pretty gay...then I saw the "Sea Chanters" ad on AFN...looks like the Navy is really trying to give the USAF gayness a run for its money.
Not to dispute anyone's comments on TIB, but I've got to give a huge "2" to this! I don't see AFN unless I'm deployed (which I currently am), so I managed to miss the Sea Chanters' infomercial until now.... Holy Shit! Two biggest cringe-inducing quotes:
"I like to think that our performances exemplify all of the technical expertise in the Navy, and all the Armed Forces!"
and
"This is a permanent duty station. We're here in Washington, DC, with each other for 10 years or more, so we become a family."
-
Spend one week around here (or any staff job for that matter) and you'd be amazed at what your tolerance for deployed queep could be.
!!2!!
That thought alone is making my current 179 (MC-12) seem like a dream job....
-
Received this in a typical base-wide email. Stopped reading at the title.
Don't forget to put on your "system" before you go to work...!
-
I certainly will follow up on this.
Add some more
to the not inconsiderable quantity of which FG has coming to him....The approval from DFAS was pretty quick--less than a week after the local FM forwarded my form to my homestation, they came back with their answer. Getting the actual money "deposited" was a different story. After some hemming & hawing, mostly about what office could take the money (local AEW FM, Shaw [AFCENT/FM], or homestation), the locals finally deigned to take my money, so the Nov TSP contribution has been made; I'm told it will be credited to my TSP account at MM pay cycle of January.
Quote of the DFAS response below, in case anyone else can use it. BL, thanks again, FG!
There is no error on the record, however, the FL was in fact coded late, which meant the system didn't know that it should have taken money out for November, IN November. Due to this fact, the member is entitled to contribute up to 7368.30 for November exempt TSP. The only way to do this, is to have the member bring in a check to his FSO in the amount of 7368.30, and the base will need to post that to the MMPA as a CC. Not a C2, as that is a collection attached to a debt, whereas a CC is simply a collection. The base will then need to refer back to us so that we may move the money to TSP accordingly. The hard part is making sure all of the above is done before EOM cutoff, otherwise, we will need to wait until after midmonth in January to process this. Let me know if you have any questions.
-
As was stated previously, these are not "new" problems. Just re-packaged in ABUs and reflective belts.
Oh, no doubt!! I was referring specifically to the *phrase*, "Do more with less," not the underlying assumptions/problems. I'd thought that was a new-speak coined in the early 90s, not dating to the late 70s.
-
It was Gen Keys as reported by the USAF historian inSierra Hotel, see page 190.
Copy, thanks! Good explanation of the letter's basis on p. 66, too.
-
Actually it was Gen Ron Keys;
Written a few years after the end of the Vietnam War by Capt. Ron Keys to Gen. Wilbur Creech, then commander of TAC.
CH, I've seen several versions of this, but usually attributed to a group of folks, not one individual. Reading this one, two questions come to mind:
- If Capt Ron Keys wrote this, how did he end up retiring as Gen Ron Keys?
- I thought the "do more with less" bs mantra was a product of the early 90s--does it really date back to the 70s?
-
My bottom line on this thread; Military in Uniform at Airport = No reason they shouldn't be afforded same, if not better rights than airline flight crew.
Actually, we are: https://www.tsa.gov/travelers/airtravel/assistant/editorial_1880.shtm
Military personnel in uniform, with a valid military ID are not required to remove their footwear unless it alarms the walk through metal detectorNow, I've no doubt you saw what you saw at Denver Int'l--but that's a case of the local TSA inspectors not knowing/following their own guidance.
My own take on the sheer silliness of a "universal" policy got expanded several notches on the way to my current deployment. The pax terminal at Ramstein takes the pax screening stuff pretty seriously (which, I guess, would make sense for an aircraft bound for a civilian airport and debarking behind the security line, e.g. BWI)--we went through the full "empty your pockets" routine & got wanded anyway because of the 427 zippers on a flight suit. (Mil in uniform got to keep their boots on.) No sooner were we through security than those hand-carrying weapons into theater were handed back their weapons and ammo. Good thing they took my shampoo away!!
-
spell check is your friend.
and
it’s about folks(leadership) loosing focus
If you're gonna make a spelling/grammar flame, may I suggest triple-checking your own work...?
PS: Oh, yeah--I actually agree w/ your point, though I wrote off Cptmorgan4me's post as flamebait....
-
You have some recourse but try to do it quickly if possible. I would say in your case AFMAN 65-116 Vol 1, Chapter 68, para 68.15.2.1 applies.
68.15.2. The following are examples of agency errors for which a claim may be appropriate:
68.15.2.1. The member enrolled in TSP and deductions were not withheld, a different percentage amount was withheld, or the deduction was taken from a different category of pay than elected.
FG, first of all,
for your help--thank you!!I certainly will follow up on this. The pessimist in me wonders, though, if my situation truly is (or will be viewed as) an "agency error," or just bad timing? I'll keep you posted. Thanks again!
EDIT UPDATE: Turned in the form yesterday. They accepted it, but w/in the hour had turned it & forwarded to my home station FM. I think that's pretty weak, but, as long as it moves along.... I'll keep an eye on it & keep you updated. Thanks!
-
This topic has been touched on recently in at least two other threads ( and ), but my question is specific to the SDP itself, so this old thread seemed more appropriate....
I'm recently arrived in the AOR. I want to start my SDP. I know the rules call for "receiving Hostile Fire Pay and be deployed for at least 30 consecutive days" (source). My understanding of that--and my recollection of how I've seen it applied in the past--has been that one has to be on *orders* for 30+ days. The finance office here, however, is insisting that I cannot enroll until Day 30 (effectively "costing" me one month's worth of interest).
Finance Guy/anyone, any better answer...?
-
Additional Question:
Finance here is telling me I'm out of luck for making a TSP contribution for Nov. I arrived in the AOR on 24 Nov. In preparation for this deployment, I maxed out my deferred contributions to the TSP in Sep--so no TSP contribution could be made for Nov, absent a CZTE. Now I'm here, but they're saying since the month already closed out, there's no way I can make a tax exempt TSP contribution (despite the fact that I have the tax exemption entitlement and my TSP contribution numbers set).
True/False? Any way around it? As I've said before, I'm trying to max roll the TSP while I'm here....
-
Sorry for the delay
No worries--sorry for my own delay, just getting my feet under me in the AOR. Thanks for hitting the questions.
If your base pay does not exceed the CZTE exempt max, and you put in close to all your base pay right away, then you may not see the extra fly pay go into TSP as exempt since the LES pay and exempt amounts would pretty much be mirrored into TSP. And consider if you max out your entire base pay for the percent, that would leave no extra dollars for the fly pay to be withheld either. But put in 50% of Base pay to TSP and I'll bet you would see it.
I'm not sure I follow--does the issue of doubling the tax advantage only occur with a partial Base Pay contribution? My Base Pay exceeds the CZTE limit (O-5 18+ yrs), but the 92% limit does not. Taking the flight pay (100%) will cover the difference with a bit left over. As I understand your point, I should make a lesser Base Pay contribution in order for the full flight pay to happen? I don't see what difference that would make. Since I want to maximize the amount into the TSP, I don't want to do that for Dec--but I can experiment in January, if you like.
BL, we seem to agree on all the mechanics, just not the result.....
If you want, PM me your actual amounts and I can try to work it up. I've seen it on a few pay records and it's true. It will be nice for you to see it for yourself and hopefully confirm what I've been saying. I'm not saying it's correct by the IRS rules and all that, but that's what the pay system does.Wilco, thanks!
-
I was walking around the KMCC for the first time and noticed about 20 or so people wearing their RB's.
I didn't know what to make of this & other examples I'd read on here. Unplanned layover at Ramstein, grabbing a rental car & lunch at the KMCC before going out to play tourist, I saw the same thing: midday, folks in uniform (lots of blues, but utilities here & there), and about 1 in 6 wearing RBs. Looked very strange/out of place, especially on the blues. One guy (blues) had one w/ cute little lightning bolts embroidered on it....
I'm proud to say I didn't see a single flight suit meeting that description. As for those I did see... I just don't get it....
-
kdwntwn:
I think I saw a sticker for your product! I'm on an unplanned layover at Ramstein, found myself on the base shuttle (billeting has us way far away from the central building, and their shuttle driver didn't show up for work this morning until 11...
). Was checking the various tags on the bus, and a great slogan caught my eye: "Aviate, Navigate, Calculate!" Sure enough, it was a plug for an iPhone app.Is that you guys? How's it going overall?
-
Jughead: I LOVE your avatar!
Why, thank you!
I assume you refer to the video made of me sitting in a cubicle for the last 4.5 years having my very lifeforce sucked out of me into a computer monitor...? Actually, I'll be changing it soon (read: when I get around to it)--I had my first flight in a USAF aircraft in 4.5 years in late Sep, and I'm now enroute to my deployed location w/ the mighty MC-12.
-
I know better then to salute back, but what the hell do I do?
Kayla, one suggestion that the previous respondents haven't made is to try flashing the guard.
No, I don't know how that fits into the protocol manual, either--but I assure you, we're all eager to hear about the results...!!
-
TSP.gov: "You receive no direct tax benefit from contributing pay to the TSP which has been excluded from gross income; however, the earnings on those contributions are tax-deferred."
Look, I can either buy stock and pay short term or long term gains whenever I want the money, or buy a TSP share for the same amount and pay income tax on withdrawal at a fixed date.
Still not tracking, addict. Yes, there's "no direct tax benefit" from putting tax-exempt income in--you can't make a deferred contribution with money that's already tax-exempt. However, you still get the benefit of tax-defferred growth.
If I put a tax-exempt $1 in the TSP, it grows/compounds over time. When I withdraw that $1, I pay no tax on it. When I withdraw the interest and/or gains attributable to the $1, I pay tax on it.
If I put a tax-exempt $1 in a CD/savings account/mutual fund/whatever, it grows/compounds over time. In any (non-tax advantaged) of these, I pay tax on any gains in the year they are paid--thus reducing the amount of compounding available. In the case of a single stock or equity, yes, you only pay the tax when you sell ("withdraw")--but unless you only sell at the time you intend to spend the money, you've still lost the ability to compound growth on the money lost to taxes. Also, if one makes the assumption that he will be in a lower tax bracket in retirement, deferring taxes until then means even more effective growth.
BL, there are still advantages to putting already-exempt money into the TSP, even though it doesn't affect your tax bottom line in the current year.
-
Just to humor this issue again from Jughead's and my lengthy exchange on the topic, is there anyone out there who may have put 100% of fly pay into TSP when in a combat zone where it otherwise was taxable in their regular pay. This would mainly only apply to those officers who max out the CZTE exemption with their base pay alone so therefore flypay would normally be taxed. But, put same flypay in TSP it's now not taxed AND goes in as "Exempt" contributions. Thereby getting more tax free when withdrawn from TSP.
I intend to do exactly that. I should be in-country w/in a week--I doubt my Nov LES will catch up, so I probably won't have a good source to look at until I get my Dec LES. Based on the foregoing, I suspect it won't be until W-2 time (late Feb?) that I can convince you of the error of your ways....
In all seriousness, I really do hope to be proven wrong (and soak up the double tax-exemption!)....Do you have an opinion on the maximum Base Pay to TSP question, FG? If the 7.65% FICA withholding *must* come out before any TSP consideration, than I'd say that 92% is the "real" max Base Pay contribution, not 100%....
-
Just don't contribute to the TSP when you have CZTE without a very good second look at where the money is going.
Hmm? Elaborate, please?
-
I'm headed off to the desert in a few months. It's my intention to max out the TSP (or come as close as possible). It's been so long since I deployed that there were still limits on percent of base pay that could be contributed. Nowadays, making all categories 100% would seem to be the way to achieve the max....
HOWEVER, I see the following statement on all my LES's: "IF TSP ELECTION AMT EXCEEDS NET AMT DUE, TSP WILL NOT BE DEDUCTED." I'm not really sure what that means. I *think* what it's telling me is that if the TSP contribution (calculated based on the percentages I set) would result in a negative number after all my other deductions, then the whole contribution is cancelled. Yes/no?
Following up on my own question. I've been delayed getting to the desert--the MC-12 program & associated delays are discussed I just finished MQT and will be trying out my TSP & CZTE theories shortly.
One snag I've hit is that I seem unable to set my Base Pay TSP deduction to 100%--I change it, and it comes back (the next month) at 92%. I did some poking around and found this on MyPay:
- The Thrift Savings Program provides an opportunity to invest in your future. You have the opportunity to elect 100% of “resulting pay” which is gross basic pay less mandatory deductions and TSP loan payments.
- Choose your TSP election percentage wisely and remember to consider your other monthly obligations. You should carefully calculate the percentage of basic pay allocated to TSP per month keeping in mind the total TSP contribution amount for 2009 is $16,500 deferred and up to $49,000 total of exempt and deferred if you have been deployed to a combat zone. Also consider all current deductions such as; Social Security and Medicare tax (i.e., 7.65% of basic pay); garnishments; alimony; child support; and all allotments. Determine your ability to maximize your TSP contribution while maintaining enough funds to support your lifestyle. In cases where your percentage election exceeds resulting pay (i.e., pay after deductions) DFAS will work with you and your supporting finance office to provide the TSP percentage that is closest to the percentage you elected.
I'm assuming that the 7.65% FICA deductions are where the 8% is going. That implies that the "mandatory deductions" must come out of Base Pay only (and not, say, BAH and/or BAS, which in my case could cover it). In other words, even though the TSP advises that each category can be contributed at any whole-number percentage, 1 - 100%, apparently the max is really 92% for Base Pay. The only "allotment" I have is SGLI, but I don't think that comes into play here.
FG or anyone else, does that jibe?
This also seems to make any question of exceeding the net amount due (per the note on my LES's) a non-issue. I guess maybe there are other types of deductions that could be made that would put you updside down...?
- The Thrift Savings Program provides an opportunity to invest in your future. You have the opportunity to elect 100% of “resulting pay” which is gross basic pay less mandatory deductions and TSP loan payments.
-
I'm still having a difficult time wrapping my head around why our people are wearing PT gear off duty anyway? Yeah, I know - to present a more uniform appearance, etc... Great, to what point?
MK, that one's actually pretty easy to answer--and it has NOTHING to do with "more uniform appearance" or any other of the offially-cited reasons.
Too many (predominantly) young, (predominantly) female (predominantly) airmen had begun turning deployed locations into an arena to try out their latest "fashion" experiments (READ: can you see my cooter now?). It's basically impossible to define what is or is not "in good taste," but it's pretty easy to say, "wear a uniform." The rest is history.
Yes, it's definitely in the category of a few piss in their beds so everyone wears diapers. But if you look back just a couple of years, you'll see it was CENTAF pushing for the implementation of the official AF PT gear, in order to be able to fully push their PT wear policy. I'm fairly convinced that this AOR issue (real or perceived, makes no difference) led directly to there even being AF PT gear (not solely, but as a major contributing factor).
Tax info
in General Discussion
Posted · Edited by Jughead
No, because that same $5K would be lessened by the taxes you'd pay along the way. If you acheived that growth solely in the form of capital gains at the end of the 20 years, then the amounts would be the same. If (as is FAR more likely) your gains include dividends and/or capital gains along the way, you pay taxes on it as you go, reducing the amount available for compounding. "Tax deferred growth" is less attractive than "tax free growth," but once you've maxed your Roth, the TSP can be an effective way to get the deferral.
EDIT to add: Oh, and unless you withdraw the entire amount at the end of the period, the tax deferral continues on each dollar until you actually withdraw it....