Thrift Savings Plan?

Discussion in 'United We Stand' started by live4christp1, Jan 7, 2011.

  1. live4christp1

    live4christp1 DIS Veteran

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    or whatever the correct term is (it's the one that you can deposit up to $10,000 into while in a combat zone and earn 10% interest rate).

    I have read the info I can find on it but still have a couple unanswered questions.

    I know they have to be in the combat zone for 30 days before they can use this. They can contribute up to $10,000 into it.

    Do the funds have to be contributed from their pay/earnings? Or if you had $10,000 in another account at a lesser rate could you transfer that $10,000 into the TSP all at once?

    Thanks!
     
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  3. pilesoflaundry

    pilesoflaundry <font color=green>it doesn't get scratched as ofte

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    I don't know how the combat stuff works but dh uses TSP and it's all taken off the top from his pay each check. It's basically a pre-tax dollars retirement fund and there is a yearly cap on how much you can tax shelter in there.

    I would think you cannot take it from another account. It would probably defeat the purpose anyway.
     
  4. lovemygoofy

    lovemygoofy DIS Veteran

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    Cristy, you want the Savings Deposit Program (SDP). Everything has to be arranged by your husband while in combat.

    There was a time when you could just dump a chunk of change in the account and call it a day but things have changed but I don't know the extent of it.

    Here is a link to read about the program and the attached pamphelt.

    http://www.dfas.mil/militarypay/woundedwarriorpay/savingsdepositprogramsdp.html


    Also, in case you didn't know this, any money your husband puts in a IRA while deployed is tax free upon withdrawl at qualified age.
     
  5. live4christp1

    live4christp1 DIS Veteran

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    Thanks Tina!
     
  6. jsmith

    jsmith <font color=darkorchid>And now I am off to get my

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    I dont know if you can put it all in at once-but we maxed our SDP account in just over 3 months this time last year. You can not transfer other monies into it-i mean you can make your deposits from where ever you choose but you cant to an account transfer-he has to go to finance to make the deposits. Also -for Guard soldiers-you have to withdrawn it from that account and move it somewhere else with in 90 days of leaving theater. However they can not withdraw from it earlier-i.e you couldnt max it-then spend it over R and R and max it again. We maxed it and then went back to putting money in a regular savings.
     

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