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What percentage of your monthly salary is required to be included in the Military Financial Savings Plan of the Consolidated Retirement System (BRS) in December 2023?
Thrift Savings Plan Calculator
Here is the 2023 Military TSP BRS Maximum Contribution Schedule, based on 2023 salary increases and TSP contribution limits above $22,500.
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To increase your 5% military TSP, you must add at least 5% to your monthly TSP and pay it no later than December of the year. The easiest way to do this is to spread your contributions evenly over the 12 months of the year
Matching the military TSP through the Consolidated Retirement System (BRS) is a great way for military personnel to save for their retirement.
I cover investing in a production savings plan in the Military Money Handbook, available on Spotify and Apple Podcasts or attached below.
BRS lets you get a government match of up to 5% of your paycheck, so your Military Savings Plan (TSP) account can grow faster. This is an improvement to the military pension system where over 80% of service members will not receive a military pension for 20+ years.
What Is A Thrift Savings Plan?
Thanks to your matching contribution to BRS, I have added an additional $4600 to the regular TSP from 1 January - 31 December 2021.
For individual retirement accounts (both IRS, Roth and traditional), it's $6,500 in 2023. $541.66 a month to top up your Roth or traditional IRA
BRS TSP sessions can be thousands per year if properly adjusted The limiting factor is that you have to contribute 5% per month, as the game is paid monthly.
So, you don't want to make your entire $22,500 contribution (annual deferral limit) in the first 6 months of the year: you have to contribute throughout the year if you want to get the full match. .
Understanding Your Fers Retirement
I used to deposit TSP contributions as much as possible at the beginning of the year.With BRS, this was no longer good so I changed my contribution strategy.
Don't worry about going over the $22,500 annual limit Unless you have a retirement account with another employer (401k, 403b, 401k individual), the DFAS computers will limit your final contribution to make sure you max out the account without going over a penny. There was a phenomenon in 2021 and 2022 that allowed contributions or "TSP spillovers" but that has been discontinued.
The table above states that all enlisted, warrant, and O-8 officers with 26 years of service must contribute monthly. If you are an O-9 or have more than 28 years of service, please have your assistant run your number.
If you want to maximize your TSP contribution in 2022 ($22,500) and want to receive the 5% TSP eligible match, you must contribute at least 5% TSP each month.
How I Grow My Tsp Balance
This process is very simple Take your maximum limit of 22,500 in 2022 Divide by 12 months = $1875 Now divide $1875 by your monthly base salary to get your contribution percentage
For example, if your bonus is $5000/month, $1875/5000 = .375 or 37.5%. Round up to 38% because you can only choose a percentage contribution
If you contribute 38% of your $5,000 salary, you'll contribute $1,900 a month to a TSP, Roth or traditional.
The match always goes to the traditional TSP for tax reasons If you contribute to your Roth TSP, you'll still get the match, but the match will go to the traditional TSP. You cannot change the Sidebar
Military Retirement Program
So by November 2023, you will have contributed $20,900 to your TSP. The meeting fee will be $5000 * .05 = $250 per month or $3,000 for the entire year.
In December 2023, because you only have $1600 left to contribute ($22,500 - $20,900), the TSP or DFAS calculators should allow you to contribute only $1600 and the remaining $200 will be refunded in your December paycheck. or January. A good Christmas or New Year bonus!
You have now increased your annual contribution and received 5% match every month of the year
If you contribute at least 5% of your TSP under BRS, how much will it cost you each month?
Year End Tax Planning For Military Families
If you get a full BRS match every month this year, it could be thousands of dollars, depending on your salary and the time you work. Compounded over several years or decades, your TSP match can grow to tens of thousands of dollars by retirement age.
The military automatically matches 1% of your base pay in your Military Thrift Savings Plan account. If you contribute at least 5% of your military salary to a Roth or traditional TSP, the military will add another 5% to your traditional TSP. It can be $1000 per year
Yes! A Roth TSP is the same game, however, it will go to your regular TSP account. When you open a TSP, you have 2 accounts in your TSP: a traditional account and a Roth account. You can join one and get a 5% match from your employer every month.
You must have at least 5% in your TSP If you are in the rank of O-4 (senior, senior commander) or below, you must contribute 5% to your Roth TSP. As your income grows, you should eventually add a maximum of $20,500 per year to your military TSP account, and still be sure to receive a 5% match each year.
My Federal Retirement
You can if your tax form or software asks you to report it. However, you already paid this amount in taxes before it went to your Roth.
To increase your military TSP match, you must contribute at least 5% of your salary each month between January and December. So you don't want to increase your contribution early in the year I have a chart on my website that will show you what percentage you should contribute.
No, the TSP rate does not include a matching limit.In 2023 you can contribute the entire $22,500 and match up to the "annual contribution limit" of $66,000. The standard TSP limit is called the "selective delay limit".
If you want to increase your TSP contribution during a pay period, you will need to do a calculation Take the total contribution limit of $22,500 and divide it by the number of pay periods (12). That's $1875 per month Divide your base salary by your monthly minimum contribution to top up your TSP by December 31st.
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