So... who's going "all in" on 1 January?

[TSP@ti2de]

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Myhousing allowancefor next year is $1239, and my my mortgage payment is only $800, so I think I'll be able to do 100% on base pay, special pay, and incentives. At the moment, it feels like a big leap, but I think I'll appreciate it 30 years from now.

 

[Soldat]

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ALL IN HERE. Just sold some stereo equipment and cameras. Will be ALL in until I hit 14k stateside contribution! ALL IN for 5 months deployed pay in 06'!!

 

[FatMoneyClip]

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I think you made a good call. With a new child and a rumored PCS move... I went a little more conservative: 20% ($573/month)

If the PCS rumors go away in March, I will either go:

1. 100% for the next 4 months and that will take me over $13k. I finish up the balance by August.

OR

2. 47% for the remainder of the2006 and that will get me to$14k.

Eitherway, $14k here we come.... and a tax credit to boot. :^

 

[James]

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I will be all in for Jan and Feb as I tax exempt income during those months. For the remainder of the year I will adjust my contributions to max out the 15K tax deferred contributions.

 

[happyhooligan]

I'm bumping mine up to 15% for now. I'm in the ANG, but will be on title 10 orders for a few months, so that should give me some time to build up my account. I wish that I had started my TSP in 2001 during the last couple years I was in the Navy. I had a good year being 50% S and 50% I.


I like that the % limit was lifted. It really sucked trying to build up my TSP account with 10% of a weekend Guard drill check and the two week AT time. If I stay in the Guard instead of heading back to AD after college, I would like to just contribute 100% of that check.

 

[OMA]

I've been deployed (OEF VI) for the last 10 months and thought that I wanted to take advantage of the tax exempt TSP contributions and IRS limit for 2006.

Other threads on the subject have me thinking twice about going 100% while here in Afghanistan. Would it be better to contribute tax exempt dollars to the TSP or wait until I'm stateside, contribute the max $15k that'll decrease my gross income for tax purposes.

I better decide quickly before payday.

Enjoy reading other's posts.

Looking forward to returning stateside after nearly a year here in Afghanistan winning the hearts and minds.

RLM

 

[James]

The quoted text below if from a post in another thread.

".but there is an 'overall' limit on both tax-exempt and tax-deferred contributions as defined by I.R.C code section 415. For fiscal year 2006, the 'overall' limit is $44000."

I would recommend contributing $15K while you are stateside and $29K while you are deployed.