JBueno
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Posts posted by JBueno
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Thanks Scooter.
Here's a follow-up on guard/reserve deployment pay: if a member is serving in the combat zone, shouldn't ALL pay received that month be tax free up to the highest enlisted pay plus hostile fire?
For example, if I do 6 AFTPs and a few AT days in early October, then get to the Deid on October 25th, shouldn't the income taxes on those AFTPs and AT days be refunded?
Trying to find a reference, but all I can find is this from IRS Publication 3 - The Armed Forces Tax Guide.
Partial month service is treated as full month of service.
If you serve in a combat zone for any part of one or more days during a particular month, you are entitled to a combat pay exclusion for that entire month.
Strat airlift guys, I'm looking in your direction.
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You guys want to compare SAT scores while you're at it?
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When deployed to a combat zone, does anyone simply . . . not have taxes taken out on your LES?
I'm a traditional guard bubba deployed for the Nth time. Taxes are always taken out on our LES. They are repaid in the next month's LES. However, that next month's LES has taxes taken out, then reimbursed on the third month's, and so on. I don't know if that's how the system is designed to work, or that's how Guard finance works. Makes it a PITA to double check amounts are correct come W-2 time. May also be a case where every guard
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On 8/16/2018 at 3:14 PM, matmacwc said:
Ha! You don’t know how this works.
You're right, I don't. Just passing along what the tour guide told us.
But really? No IPs from any follow-on course have observed this thing?
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On 7/30/2018 at 2:32 PM, matmacwc said:
You're going have a bunch of angry B-course IP's and a disappointed CAF, but the experiment is supposed to end at Kelly I believe, and hope.
I visited the Austin site a while back. From what we were told, the B-course IPs have been observing from the get-go.
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13 minutes ago, SocialD said:
Yup, I was aware of the 402g limit of 18.5k applying across all employers, but until your post, I did not realize the 415 limit was per employer. After doing some research, the bolded text above, and my previously posted example, are correct.
Contribution limits do NOT apply when rolling over funds, such as 401a, into a Roth IRA. For example, last year I contributed $5,550 to my Roth IRA (via the backdoor...sts) AND rolled over ~$7,000 from my 401a, for a total of ~12.5k into my Roth IRA. I do this because 401a is after tax money in which gains are taxed, which is obviously not ideal. I just wait for my 401a money to post into my account then immediately roll it into my Roth IRA. I only pay taxes on the small gains it makes in the day it sat in the account before being rolled.
It's often referred to as the "Mega backdoor Roth IRA."
https://thecollegeinvestor.com/17561/understanding-the-mega-backdoor-roth-ira/
Awesome, sounds like you've got it pretty well figured out!
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On 1/7/2018 at 8:34 PM, SocialD said:
Wait...what? So you're saying, for me the 415c limit is 55k for Delta and 55k for TSP? If I'm reading this correctly, I could contribute 18.5k to my TSP which would max my 402(g) benefit. Then I could contribute to my Delta savings plan via 401(a) contributions, which carries a limit of 55k. So even if I don't deploy to a tax free zone (which has been the last 2 deployments for me), I could still do the following?
Delta Pay: $200,000
Company 401k contributions: $32,000
Personal 401(a) contributions: $23,000
TSP: $18,500
Total: $73,500
I have never heard or noticed the "per employer" limit wrt 415(c). I'm going to have to run this by the tax attorney, but if true this could be a total game changer for my savings plan.
BLUF: Generally no, you can't do this. You'd have to do a little research into Delta's Summary Plan Description and see which contributions count towards the $18,500 limit. If the 401a contributions count towards, it, you can't do what you've proposed. If they don't count, you should be able to.
The $18,500 elective deferral limit applies across both employers. Traditional contributions made from tax-exempt pay do not count towards the $18,500, so you have to be deployed to a combat zone to make contributions above $18,500.
On 1/8/2018 at 6:47 AM, torqued said:say im maxing out my company 18,500 401k limit and receiving the company match and profit sharing that maxes out the 55,000 total limit.
i'm also deploying to a tax free location for a couple months. Is there any financial advantage to making TSP contributions?
My plan is to spend all my deployed pay on bitcoins. Does this make sense?\
Yes, this is the huge upside I was talking about. You have an additional $55,000 of traditional TSP space available. You've used up all your $18,500 limit under 402(g), but traditional contributions from tax exempt pay don't count towards that limit. They count towards the $55,000 limit under 415(c) which is per employer, so you've got another $55,000 available.
If you've opted into the BRS the Tetris bricks stack up a little differently against the cap, but the caps are still the same.
On 1/8/2018 at 7:49 AM, SocialD said:I'm just thinking this plan could allow me to funnel a decent amount of cash into a SDIRA (via the 401a -> Roth IRA), while still taking advantage of the 18.5k tax deduction for my TSP contributions.
Just curious; why would you flow money through a 401a to a Roth IRA? Why not just go straight to a Roth IRA? There's no income limit to a backdoor Roth IRA, and it leaves your 401a space available.
Also, for the married folks here with stay-at-home spouses, there's $5500 for a non-working spousal IRA. It phases out at That might help a little bit, too.
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On 1/4/2018 at 11:23 PM, rancormac said:
Something to keep in mind for guard dudes...
Any contributions to TSP (BRS or not.. but now dudes under BRS are more likely to be contributing finally... as you should) still count towards IRS personal contribution limits ($18k per year I think)? So if you're working for another civ job and contributing to your 401k, both account contributions combined technically cant go over the annual $18k limit.
This is correct (well, $18,500 for 2018) but it's not the entire picture.
Under IRC §415(c) there's a $55,000 limit per employer. If you work for an airline and you're in the Guard and Reserve, you have a huge benefit here.
For example, if you're at American, the company can put your 401k defined contribution and your profit sharing in, plus any contribution you make. For 2018, the sum of all three is capped at $55,000 and your contribution is capped at $18,500 (the elective deferral limit).
Your total out-of-your-own paycheck contributions to the 401k and TSP are capped at the $18,500 elective deferral limit.* Whatever you don't contribute to the $18,500 limit at the airline you can contribute to the TSP.
*There's an additional benefit if you're deployed. Under IRC §402(g) the $18,500 limit does not apply to traditional contributions made from tax-exempt pay earned in a combat zone. If you're earning tax-free pay in a combat zone, you can contribute above the $18,500 limit up to the $55,000 limit.
If you make $150,000 at Delta in 2018 and deploy as an O-5 in the Guard for a few months, you could do this:
16% 401k $24,000
20% Profitsharing $30,000
Total Delta 401(k) $54,000
Deployed Combat Pay to Traditional TSP $55,000
Total Tax Sheltered Space $109,000.
Under USERRA, airline guys on military leave are also eligible for 401k make-up contributions for any 401k contributions you would have been entitled to while you were deployed. Generally that means whatever your pay rate is and your monthly guarantee or bid line average, multiplied by your 401k defined contribution rate.
https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-userra-and-sscra
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I guess my point is this: people are making decisions based on the assumption that if you WANT to get to 20 you WILL get to 20.
A bird in the hand is worth two in the bush. And it's also a decent stop at Mildenhall.
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I keep hearing "If your plan is to stay to 20". My plan is great but what about Big Blue's?
We're always one waist measurement away from not getting the cliff vesting at 20.
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Has anyone had any luck using a CAC reader at home with a Chromebook?
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5 hours ago, dream big said:
Some of the solutions and answers are complicated but some are easy fixes: separate promotion boards for rated, homesteading instead of PCSing every 3 years, pure flying track/eliminating up or out, get rid of 99% of the CBTs.
Let's talk about a pure flying track. What's it look like?
If a pure flying track was capped at O-3, would guys go for it? For 20 years?
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Anyone here used Texas Aviation Academy near Randolph?
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Outside of your yard, past 0001, for those in AETC, no? Let's get those 29B's in!
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This headline made me laugh, especially coming from the Air Force Times.
Congresswoman to Air Force: Put down the tuba, pick up a gun
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On 12/16/2015 at 4:45 PM, bennynova said:
100%, you are grandfathered in
they government would be sued out their butt for giving someone $2000 a month (that individual signs a lease or buys a house) and then the government cuts the rate to $1800
all of us automatically get the highest BAH, and it never drops.
Keep smokings and and living large, guys
If you can't make ends meet without that extra $200, you probably don't have the war chest to sue the federal government for changing BAH rates.
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I see one gunship fan in a faraway land...check out the blue t-shirt, front and center.
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Waiver. If you are guard or reserve and own a house in the location you will be returning to, it is not too difficult to get a waiver since you have a mortgage and will be PCS'ing back.
Good question, and good prep for constantly raising your guard/reserve hand at UPT.
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If my memory serves me correctly, the plaque at Little Rock mentions it was flown by 1Lt Brian Williams.
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^^^^this class was incredible from what I heard. The best studs seen in a long time.
Edit: at least on the 38 side.
Sent from my iPhone using Tapatalk
I have ever heard any UPT instructors describe any their students using any of the phrases you just used. And I went to UPT with Brian Williams.
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For those who have completed the new course in correspondence, how long is it taking?
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Here's an interesting look at our general foreign policy. Thought provoking if nothing else.
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Read "Escape from Camp 14".
I just finished reading A Mig-15 to Freedom, by No Kum-Sok. It's a great book about both flying and freedom.
IFT deadline?
in Q & A Forum
Posted
What Yaweh said. I had my PPL, but going to IFS and getting a general idea of how the UPT structure works was helpful.