Bonus

[bmsd1]

Looking for a little help...

I'm currently AD and about to get a re-up bonus. I already know i want to max out the TSP for the year using the bonus. With that said, I'll still have about another 15k to do something with. I'd perfer to get it tax free (401k, IRA...). Is this an option. Can I have a bonus go into a Merrill Lynch IRA for instance? Thanks in advance for any help.

 

[tsptalk]

Sure, but there are limits to IRA deposits...

YEAR.........AGE 49 & BELOW......AGE 50 & ABOVE
2006-2007.... $4,000.................. $5,000
2008.............$5,000...................$6,000

 

[bmsd1]

Is that right...Any idea as to how I cold get Merrill Lynch that 5k...before taxes? is this a mypay or admin function maybe?

 

[tsptalk]

I'm not sure what you mean by mypay. Any military folks out there care to help?

By the way, welcome to the site bmsd1!

 

[oreo]

I'm not sure what you mean by mypay. Any military folks out there care to help?

By the way, welcome to the site bmsd1!

I'm a civilian and I'm not sure if its the same with the military but mypay is the website that allows us to manage our pay, leave, W2s, etc. I think this is the mypay he is referring to. It is located at https://mypay.dfas.mil/mypay.aspx They also have an FAQ at the contact section of the site.

I also worked at a budget office on a post and I know when I worked there, even though I worked in civilian pay, the military always had some type of resource management office to help the military with pay issues. I haven't worked on a post in some time, but if there is such a person, I might want to look into contacting him or her.

Hope this helps.

oreo

 

[oreo]

I just found this part of the mypay site which may help at https://corpweb1.dfas.mil/askDFAS/askMilPay.jsp. It says:

Ask Military Pay -- Get Answers Fast

Providing responsive, professional finance and accounting services for the people who defend America means delivering timely useful information. Our site allows customers the ability to request support or provide feedback. Every individual is unique, but they often face similar issues. Browse our frequently asked questions database before submitting a question for best results.

Ask Military Pay Home | Submit a Question

Good Luck,

Oreo

 

[Dodge_Em]

From my 4 short years with mypay ... I had never head of a disbursement into a non-govt 401k.

So you are going to get taxed up the ying-yang on it. You can put after tax money in a Roth IRA, up to the limit that Tom mentioned.


FYI ... You can only put $15,500 in a Simple 401K.
You can't max out TSP and have another Pre-tax 401K.

So in other words, what you can do is put more money a Roth IRA. ($4000 post tax).

You might want to talk to your tax person ... if you start screwing around with different accounts.

 

[Birchtree]

If you go with Merrill with only a modicum of money they will eat your lunch. You would be better off looking at Sharebuilders online and consider their fee schedule - $4.00 a trade. Buy yourself some good stocks that pay dividends and let them dollar cost average into your shares. You'll do fine this way.

 

[bmsd1]

Gents,

Thanks for all the help...I'll be submitting the question to mypay right after im done typing this "thanks". This site is great, as I've been monitoring it for the last year or so...ya'lls (I'm from the south) knowledge covers alot of important topics...thanks for the info.

Brian

 

[pyriel]

You may place your bonus into TSP or part of your base pay into it up to a max of $15,500 for 2007.
You may also do both (TSP and 401k) provided you dont go over the maximum amount of $15,500 for 2007.
You may not contribute to a 401k unless you have a business that allows 401k as an option to all of its employees. Since you menetioned that you are AD, I am assuming that you dont have a business that will allow you to put your pretax dollars into 401k. Additionally, please be aware that the pretax dollar I am talking about here is the salary you receive from your business (not your AD pay).

P