TSP for Spouses of AD Personnel

[NancyH]

Question:
According to the current TSP guidelines, spouses of Active Duty Military Personnel are not allowed to have TSP accounts in their spouses' names through the Servicemember's DFAS account.

AD spouses are often unable to accumulate retirement benefits, and are prevented from participating in private retirement plans because of gaps in employment and frequent relocation.

The recommendation would be to introduce legislation allowing AD servicemembers to create a TSP account in their spouse's name through the servicemember's DFAS account.

This was a global AFAP issue my installation recently raised. Any feedback on this issue, anyone?

 

[domingo3]

Spouses are eligible to contribue to an IRA. The TSP account balance can be considered joint property.

For 2007, a military family can contribute $23,500 towards retirement.

That's $15,500 in TSP + $4000 service member IRA + $4000 spousal IRA

1. How many military families are trying to save more than that? I think very, very few.

2. Why the worry about whose name it is in?

3. This would represent a significant departure from the rules for 401Ks. There are plenty of spouses of civilians who are unable to contribute to 401Ks.