Air Force Reserve Monthly Pay

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What percentage of your salary should you contribute to your Military Savings Plan with the Blended Retirement System (BRS) to reach the maximum in December 2023?

Air Force Reserve Monthly Pay

Here are the contribution charts for the 2023 military TSP BRS, the 2023 military pay increase, and the TSP contribution limit of $22,500.

Military Pay Dates

To maximize your 5% military TSP match, you must contribute at least 5% TSP per month and no later than December of the year. The easiest way to do this is to spread your donations evenly over the 12 months of the year.

A military TSP matched through the Blended Retirement System (BRS) is a great way to build retirement savings for military service members.

I cover investing in a satellite savings plan in my Military Money Guide podcast, available on Spotify and Apple Podcasts, or posted below.

BRS allows you to receive 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 for more than 80% of soldiers who do not receive a pension of 20+ years.

Reserve Program Preps Recruits To ‘grab Some Air’ > Air Force Reserve Command > News Article

Thanks to the BRS matching contribution, I added an additional $4,600 to my regular TSP between January 1 and December 31, 2021. Compounded at 7% over 40 years, these matching contributions grow to $68,000.

Individual retirement accounts (Roth and traditional IRAs), $6,500 for 2023. $541.66 per month to top up your Roth or traditional IRA.

If properly optimized, a BRS TSP game can amount to thousands per year. The limiting factor is that you have to contribute 5% every month because the game is paid every month.

Therefore, you don’t want to contribute $22,500 in the first 6 months of the year (delaying the annual eligibility period): if you want to get the full match, you have to pay for a year to contribute.

Understanding Military Pay

I rolled over my TSP contributions as quickly as possible at the beginning of the year. Within BRS, this is no longer optimal, so I have changed my contribution strategy.

Don’t worry about going over the $22,500 annual limit. If you don’t have another employee retirement account (401k, 403b, solo 401K), DFAS calculators will limit your final contributions to ensure your account doesn’t go over a penny. In 2021 and 2022, there was an issue where grants or “TSP spillovers” were allowed, but that has been fixed.

The chart above shows the monthly contribution percentage for all enlisted, warrant and officer ranks for O-8 and 26 years of service. If you are an O-9 or have more than 28 years of service, ask your colleague to run the numbers for you.

In 2022 ($22,500) if you want to maximize your TSP contribution and receive your 5% TSP match, you must contribute at least 5% to the TSP each month.

Joining The Air Force Reserve

The formula is very simple. Get your maximum elected deferred contribution limit of $22,500 in 2022. Divide by 12 months = $1,875. Now divide $1,875 by your monthly base salary to get the contribution percentage.

For example, if your base salary is $5000/month, 1875/5000 = .375 or 37.5%. It can be extended up to 38 per cent as you can choose percentage only shares.

If you add 38% of your base salary of $5,000, you’ll add $1,900 per month to your TSP, Roth, or regular.

The match always goes to the traditional TSP for tax reasons. If you contribute to a Roth TSP, you’ll still get the match, but the match will roll over to the regular TSP. It cannot be changed Side label

Drill Pay Charts

So by November 2023, you will have contributed $20,900 to the TSP. Your game will be $5,000.05 = $250 per month or $3,000 for the entire year.

In December 2023, since you only have $1,600 left to contribute ($22,500 – $20,900), the TSP or DFAS calculators should only allow you to contribute $1,600, with the remaining $200 paid back in December or January. A great Christmas or end of year bonus!

Now you’ll get a full 5% match every month of the year by multiplying your annual contribution.

If you put at least 5% of your paycheck into a TSP under BRS, you might be surprised how much goes out each month.

Jackson Speaks On Way Ahead For Air Force Reserve > Air Force > Article Display

If you get a full BRS match each month this year, it could be in the thousands of dollars depending on your salary level and length of service. Compounded over several years or decades, your TSP match can grow to tens of thousands of dollars by the time you retire.

The military automatically matches 1% of your base pay to the Military Savings Plan account. If you contribute at least 5% of your military pay to a Roth or regular TSP, the military will contribute another 5% to the regular TSP. It could be $1,000 a year.

Yes! Roth is TSP compliant. However, the game will be credited to your regular TSP account. When you open a TSP, there are 2 accounts in the TSP: a regular account and a Roth account. Join one and you can match 5% per month from your employer. However, if you contribute to Trad or Rot, the game always continues with the normal score.

At least 5% should be deposited in TSP. If you are commissioned below the rank of O-4 (major, lieutenant commander), you can contribute 5% to Roth TSP. As your income grows, you must contribute a maximum of $20,500 to your military TSP account each year, while making sure you match 5% each year.

Become An Air Force Officer

If the tax form or software asks you to report it, you can. However, you paid taxes on that money before it went into the Roth. Therefore, it does not reduce the taxable income in that year.

To maximize your military TSP game, you must contribute at least 5% each month from January to December. So you don’t want to increase your contribution at the beginning of the year. I have a chart on my site that shows what percentage you will be contributing.

No, standard TSP limits do not include adjustments. In 2023, you can contribute the full $22,500 plus an adjustment up to the $66,000 “annual excess limit.” The standard TSP limit is called the “Selected Deferral Limit”.

If you want to increase your TSP contribution each pay period, you need to do the math. Take the annual contribution limit of $22,500 and divide it by the number of payment periods (12). $1875 per month. Divide your base salary by December 31st to get the minimum wage contribution to top up your TSP. Between Saturday, October 21st and Thursday, October 26th at 07011, estimated delivery times are calculated using our proprietary method based on customer proximity. Location of goods, shipping service, seller’s shipping history and other factors. Delivery times may vary, especially during peak periods.

Air Force Reserve — Today’s Military

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