How to Budget for Temporary Duty Assignments: TDY or TAD

Many military families are all too familiar with Temporary Duty Assignments. For those of you who are not familiar, Temporary Duty Assignments can be viewed as a “business trip” or “mini-deployment” for service members. The duration of a Temporary Duty Assignments typically ranges between a couple of days to a couple of months.

All branches of the military have slightly different acronyms (TDY, TAD) for Temporary Duty Assignments. Also, regulations and per diem rates are going to vary based on the military personnel’s branch of duty, occupation, and location.

Although there are going to be differences in your Temporary Duty Assignment, chances are you will be able to budget for your TDA using one of the three techniques (or a combination of the three) described in this article.

Financial Expenses to Consider for Temporary Duty

  • Transportation
  • Lodging
  • Food
  • Entertainment/Miscellaneous Expenses

Finances at Home

Your family’s finances will be different when the service member is on temporary duty. You will need to take these difference under consideration when budgeting for a Temporary Duty Assignment.

Possible Extra Expenses

  • Child Care- if the service member typically cares for the children while the other spouse works.
  • Food Expenses- the spouse left at home to look after everything will probably be a little… exhausted, and may buy more convenience foods or restaurant meals.

Extra Savings

  • Car Expenses- the service member will not be driving his/her car and therefore the family’s gasoline and car maintenance expenses should decrease.
  • Food/Utilities- with one less person living in the house, food and utility expenses may decrease slightly.

How to Budget for a Temporary Duty Assignment

Three Strategies to Budget for a Temporary Duty

Finance Now, Pay Later

This strategy has you placing all Temporary Duty Assignment expenses on your GTC or personal credit card. Once you are reimbursed for your expenses, then you pay off the credit card.

Pros:

  • Requires Minimal Planning
  • Your Savings/Checking Accounts are not immediately impacted
  • Some expenses (typically airline tickets, lodging, rental car) are required to be placed on your GTC, so you will be using it anyway.

Cons:

  • Possibility of your expenses being greater than your reimbursement. If you spend more than your per diem, you will end up with a lower reimbursement than your credit card bill.
  • If you do not have a GTC and put it on a personal credit card, you will be dealing with interest rate charges while you wait for your reimbursement
  • Makes it difficult to be aware of your exact expenses
  • With the ever-changing rules and regulations of what can and cannot go on the GTC and what is and is not reimbursed, you need to be fully aware of all rules and regulations.

Temporary Duty Fund/Savings Account

This strategy has you using your money out of a fund you specifically saved for your temporary duty or out of your general savings account. Once you are reimbursed, that money is yours to replenish your savings or spend as you see fit.

Pros:

  • You can budget before even leaving  for your TDY with the amount in your bank account.
  • You can withdraw cash from your bank account to give yourself a daily or weekly  “allowance” to keep track of your spending.

Cons:

  • You may have very little notice of an upcoming temporary duty and it may not be possible to save the extra money in a short amount of time.
  • Your family may need your savings for another expense, such as an emergency car or house repair while you are on temporary duty.

Cash Flow Expenses

This strategy has you include the temporary duty expenses with your monthly budget and you pay them out-of-pocket, just as if it was another monthly expense. Once you are reimbursed, that money is yours to spend as you see fit.

Pros:

  • Does not impact your savings account
  • Your reimbursement will seem like a “bonus” because all of your expenses have already been paid .

Cons:

  • You may not have enough “wiggle room” in your monthly budget to allow for the extra expenses.
  • For most families, it wouldn’t be practical to pay for airfare and 30 nights in a hotel with your monthly budget.

How Do We Budget For a Temporary Duty?

We use ALL three methods! Talk about confusing!

My husband has a Government-issued Travel Card (GTC) and regulations force him to place airline tickets, lodging, and rental cars on it. Therefore, we are forced to use the “Finance Now, Pay it Later” method. Fortunately, with the GTC we don’t have to worry about interest rate or making minimum payments because none of it is due until he receives  his reimbursement.

We use the Savings Account method for larger expenses we know for certain will be reimbursed, but we do not have much control over the price. For example, on my husband’s current TDY we knew ahead of time the taxis to/from the airport would not take credit cards, but would be $50+ each way.  So we  took it from our savings account and once we are reimbursed it will be refunded back into our savings.

We use the Cash Flow method for all expenses that we have more control over how much is spent. Read: Food and Entertainment. These are the expenses during your temporary duty assignment that is either going to break you or can leave you with a nice little profit.

We budget my husband’s food and entertainment expenses in our monthly budget.   Based on my husband’s temporary duty location, we determine an appropriate “weekly budget.” Typically we will overestimate food expenses to allow some room for entertainment.

Current TDY Budget

My husband’s current temporary duty is on a fully functioning overseas military installation. Therefore, we knew he would have access to a commissary, dining facility and most likely his lodging would have a mini-fridge and coffee maker (he lucked out with a full kitchen). We figured his expenses would be $100/week with an additional $100/month cushion for incidentals.

Our monthly budget can easily absorb an extra $500 expense and really it wasn’t a full $500, because my expenses at home were $300 less with him absent (food and his commuting to work expenses).

My husband simply withdraws $100 from the ATM every week to cover his expenses. This keeps it easy to track his expenses and keeps us on the same page. So if for some reason we are not in communication with each other for a few days or weeks, we know there should not be any “surprise” ATM withdrawals.

Why Do We Budget for Temporary Duty Assignments?

We budget this way for several reasons. First the regulations of the GTC seem to always be changing. Therefore, we do not want to run the risk of making an incorrect charge on it. Also, the GTC is in my husband’s name. Therefore, it is debt in his name and we do NOT want debt. This is why we only use it when it is required to do so.

We also know by using cash we are aware of every single dollar that is spent. Plus, cash makes us more mindful of our purchases, so we use cash to limit expenses.

By budgeting my husband’s temporary duty this way,  we know the full per diem pay will be going to pay down our mortgage! It should be an extra  $2000! YAY! Takes a little bit of the sting away from him being gone for so long.

Tips to Reduce Temporary Duty Expenses

  • Use Cash
  • Give Yourself a Weekly or Daily Budget
  • Eat Where it is Free and Cheap
    • Free Breakfast at your hotel?
    • Pick up breakfast, snacks, and beverages at the commissary
    • Eat at the dining facility
    • Pick up a pre-made sandwich or salad from the commissary (cheaper than fast food)
  • Personal Supplies
    • Laundry: If your temporary duty is less than a couple of weeks, include a couple of All-in-One laundry detergent/dryer sheets in your luggage.
    • Pack pain relievers or other over the counter medications you use frequently.
    • Pack small bottles of shampoo, soap, shaving cream, sun block, etc.
  • Entertainment
    • Look into discounted trips offered by MWR/ITT/Outdoor Rec, etc.
    • Bring a book and a few movies with you

 

Financially preparing for a temporary duty will not only avoid extra financial stress but will also allow you to minimize your expenses. By limiting your expenses through budgeting, you will create “extra” money from your per diem rate, to be put towards your financial goals. Wouldn’t it be great to put an extra $200 or $1000 towards your financial goal?


How does your family budget for Temporary Duty Assignments (or business trips)?

You May Also Enjoy:

Budget Loving Military Wife  Financial Decisions for the Military Family  Military Family. Military Spouse.

10 Biggest Financial Mistakes. Military Edition

 

Optimized-financialmistakes

 

Military families have many unique differences in our finances compared to our civilian neighbors and friends but we are also struggling with some of the same financial mistakes. If there is one thing that all of man kind has in common, it would be the ability to make mistakes.

Of this compiled list of the Biggest Financial Mistakes, my husband and I were making 8 of the 10 mistakes before we decided to turn our finances around. Today, nearly 3 years after “Our Financial Story” began, we still struggle with #10, but we have made amazing progress. Acknowledge your mistakes, and move in the direction of financial security.

Are You Making Some of these Biggest Financial Mistakes?

 

  1. No Emergency Fund

    In my experience, it is even more important for military families to have an emergency fund, than civilians. We often move every 2-3 years and if one of these moves happens to be an overseas move you will need $5000-$10,000 to have a successful PCS without the accumulation of debt.

    Also, with the current downsizing of military personnel there are not “guaranteed paychecks” although you or your spouse hope to continue serving our country there are multiple reasons this dream may be cut short. More military families are single income homes than civilian families, meaning if the military member for some reason stopped receiving his/her paycheck this family could possibly have no income. The “government shutdown” was less than a year ago, do you remember all of those government employees who were without pay for several weeks???

    How to Fix: Pay yourself first and get on a written plan, AKA Budget. Even if you can only save $50/month at first, something is better than nothing. Sell some things around the house you no longer use. The goal is to have 3-6 months of expenses saved in an emergency fund. This money is ONLY for true emergencies!

  2. Buying New Cars

    A new car depreciates nearly 20% the moment it is driven off the lot and will depreciate 40-60% in the first 5 years of ownership. Plus paying 3-6% (much higher if you have poor credit) interest on the loan.

    I see many young military members driving around $30,000+ new cars and the more popular (and expensive) pick-up trucks. After 5 years, this $30,000 vehicle is now worth $12,000 and you have paid $2300-$4800 in interest. Can someone with an income of $25,000-$30,000/year “afford” to throw away $14,000-$17,000???

    This would be like throwing out a $100 bill every week of those 5 years. Suppose you are a family with two vehicles and a higher income. But don’t the numbers just double? So is it really any better?

    In 2013, the average car payment was $471/month. What would $471/month become if it was invested between the ages of 16 years and 65 years with 8% investment returns? How does $3,386,000 sound??? Your car payment is STEALING your retirement.

    How to Fix: If you are “car poor” meaning your car payments are using too much of your income, for you to get ahead financially. You need to consider selling the car. A good rule of thumb is your transportation expenses (fuel, maintenance/repair, payments) should be around 10% of your income. Meaning a $600/month payment for two cars doesn’t make sense if your take home pay is $6000/month. Purchase reliable, used cars for CASH!

  3. Purchasing a Home

    Often purchasing a home for an active duty military family is a poor financial decision. Financial experts recommend only buying a home if you plan on living in the home for a minimum of 3-5 years. The reason being, this gives the home value a chance to appreciate to cover the closing costs associated with selling a home. Unfortunately, military families rarely live in the same location for more than 3-5 years. Homes near military installations also appreciate much slower than homes in other areas, because there is always a surplus of homes on the market in these areas. It is not rare to see a home being sold for LESS than what it was purchased for a few years prior, near a military installation.

    Purchasing too much of a home can also be a financial mistake. In order to set your self up financially, you should be  debt free and have a 10-20% down payment. You should get a 15-year fixed rate mortgage. If your mortgage payment +insurance + property taxes is more than 25% of your take home pay. You have too much house, and you will be “house poor.” This will make achieving other financial goals difficult.

    How to Fix: If you have already purchased a home, chances are the damage (if any) has already been done. If you cannot “afford” the home you are currently living in or renting from across the country (or world), you need to consider selling it. Yes, you may take a $10,000+ loss but between continual maintenance and repairs you may lose this and perhaps more by holding onto the property hoping the property value will increase.

  4. No Retirement Funds

    Neglecting to save even a minimal amount for retirement, could end up costing you millions of dollars and possibly a comfortable retirement. Just $200/month invested into a Roth IRA or TSP/401K (assuming 8% investment returns) between ages 18 years and 65 years, ends up being $1.1 MILLION! If you wait until you are 38, you would have to invest $800/month to catch up by the age of 65 years.

    The “8th Amazing Wonder”… compound interest! The sooner you start investing, the more time compound interest will work in your favor. Start investing for retirement, NOW!

    How to Fix: Start investing something. Even if you can only pull together an extra $20 or $50 each paycheck, set up an automatic deposit into your retirement accounts. When you receive a pay increase, continue living on your current income and send your raise to your retirement accounts. Continue trying to increase your retirement investments until your contribution is 15% of your gross income.

  5. No Spending Plan

    Living paycheck to paycheck is often the result of not having a plan. Nearly half of all Americans live paycheck to paycheck. Some of these families are living under the poverty level, but many of these families have an income of 6-figures. If you do not tell your money where to go, you will be wondering where it all went.

    Every month, before the month begins sit down and write down your expected income and expenses. Every dollar needs to be placed in a category. There is no room for “extra” or “deficits,” you work out the budget until every dollar is spent on paper. Income – Expenses (Giving, Saving, Spending) = ZERO.

    How to Fix: Sit down NOW with your spouse and write out your income, expenses, and debt. Devise a plan that will work. This plan is the blue print to how you are going to become financially secure. HERE is a link to Dave Ramsey’s FREE budgeting worksheets. Check out this post “The Dreaded B Word… Budget” for further tips and tricks to establish a budget in your household.

  6. Too Much Debt

    Often times, families desperately want to make a difference in the finances and are busting their rears. They are doing everything in their power to tackle debt or establish an emergency fund and the wheels are just turning with no traction. Some families simply have too much debt and can’t seem to make much headway.

    A general rule of thumb is if you have a debt to income ratio higher than 30%, you have “too much” debt. For example if your take home pay is $3000/month and your total debt payments are more than $900/month , you simply have too much debt.

    How to Fix: First step is to immediately stop borrowing. Take those credit cards out of your wallet and no more new debt. Tackle your smallest debt with a vengeance. Have a yard sale, sell a few things on craigslist, get a couple of side hustle jobs (babysit, walk dogs, etc.) to get your first few hundred dollars to pay off your smallest debt. By paying this smallest debt off, it should free up $20-$50 in monthly payments and this can be put towards paying off the next debt. Snowball your debt!

  7. Eating Your Paycheck

    Quite literally sometimes. Do you eat out at restaurants often, don’t brown bag your lunch? You may be guilty of eating your paycheck. Have you ever totaled your monthly expenses for restaurants?

    We were guilty of this! We went out to dinner 2-3 times a week and out to lunch 1-2 times a week. Assuming each lunch was ~$7 and our average bill for dinner was ~$40.  We were spending $370-$600 at restaurants in a month! This does not even include groceries. Yikes! I know this is quite “average” and there are many families who eat at restaurants more.

    How to Fix: Slowly change your habits. If you eat out at lunch 3 days a week, set a goal of only twice a week. If you eat dinner out 4 times a week, set a goal of three times a week. Once the new habit is comfortable, lower your goal by another meal. My husband and I now eat at restaurants 2-3 times a month. Yes, we went from 3-5 times a week, to 2-3 times a month. This transition did take over two years and you don’t need to be as extreme as us. But remember, each meal at home is going to save you a considerable amount of money, so consider it a win!

  8. Not Working Together

    Typically in a marriage there is one person who is the “finance person” who pays all the bills and is responsible for keeping an eye on all the accounts. I’m here to tell you there is a much better option!

    Both spouses need to have an active role in establishing financial goals, setting a budget, paying bills/buying household items, etc. This is especially important in a military family because of the frequent separations secondary to deployment, TDY, training, etc. Each spouse needs to have ownership and responsibility of holding up their end of the agreement to the financial “game plan.”

    If you do not have team work in your finances, chances are one spouse is sabotaging the other’s goals/plans, possibly without even being aware of how their actions are effecting the family’s financial security. Working together is going to relieve a lot of stress for both spouses and remember the old saying “two heads is better than one.” I promise you, financial teamwork is going to get you to financial goals much faster than you ever dreamed possible.

    How to Fix: Set up a financial “date night.” Remember “finance person” this is NOT going to be fun for the non-finance person. Get your spouse up to date on your current finances (income, expenses, debt, investments, etc.). Remember just the basics, no details or spreadsheet after spreadsheet. Then talk and dream about your financial goals. Set up your next budget meeting “date.”

  9. Not Planning for Military Separation/Retirement

    Your military separation/retirement is going to be a HUGE transition in your life. Not only for your career and family life, but also for your finances.

    You may be thinking I have only served 5 years or 10 years, I have a lot of time before retirement. However, less than 20% off all military members serve a 20 year career. Meaning there is a high chance that your military career will be cut short, whether voluntarily or not.

    Even among those who do serve 20+ years, I hear time and time again how they have no “game plan.” No emergency fund. No extra training or education. No plan on how to obtain civilian employment.

    How to Fix: Whether you are just starting your military career or nearing 20 years, you need to start planning for the day you leave the military. Set yourself up financially to be able to “survive” 6+ months of employment searching and to be employable in a civilian career field. Read this post, “Military Retirement” for further details.

  10. Not Taking Advantage of FREE/Discounted Services

    There are many FREE services on a military installation to help you with your finances. If you are unaware of these services stop by or make an appointment with your installation’s family readiness center/group to inquire about these services.

    Many families are financially devastated when the “bread winner” of the family unexpectedly passes away. Did you know military members and spouses are automatically enrolled in life insurance policies? Look into your policy and make sure it would be enough for your family if the unthinkable happens. Along those same lines, military members can receive free legal counsel. Make sure you have a Will in place just in case the unthinkable happens.

    Military members and dependent family members can also receive FREE financial counseling, pre-employment services, and transitioning counseling. Please take advantage of these FREE services.

    How to Fix: Educate yourself about the available services. Inquire at your local readiness center/group, ask fellow military members about available services. Read the emails and newsletters that are sent to you that typically have further information. Attend a class or two.

     

There are many things you can do to place yourself and family in a better financial situation. Remember to stay focused by conquering just one or two goals at a time. Prioritize your financial goals and remember one step, one day, one dollar at a time. YOU CAN DO THIS!

 

Don’t miss another post, be sure to follow Budget Loving Military Wife!     twitterbutton  pinterest button facebook
If you have enjoyed this post, please share with your friends using the social media share buttons below!

 

What have been some of your financial mistakes? Do you have financial tips for military families?

 

Optimized-DEBT    Optimized-militaryhome   Optimized-Key Habits

Shared on: Create it Thursday, Thrifty Thursday, Thrifty Couple

How to use a Deployment or TDY to get Financially Ahead

 

Although my husband and I don’t look forward to deployments or TDYs, we know if we plan our finances accordingly and prepare a budget, we can get ahead financially. That’s right, we take advantage of the slight increase of income to make bigger payments on our debt.

Temporary Duty (TDY)

TDYs often offer a per diem rate, meaning you get a certain amount of money per day during your TDY. The money is to cover the additional expenses of food and the amount depends on what dining services are available to the military member. In our experience, it seems to average $30/day.

My husband’s TDYs have been anywhere from 10 to 30 days. Meaning, an extra $300-$900 is going to be on the next paycheck(s) and if you don’t have a plan, it will be spent before you know it. A plan also prevents the spending of more than the per diem. My husband has been on TDYs to Nellis AFB (VEGAS), so believe me when I tell you some people spend way more than their per diem.

Your plan needs to take into consideration any extra expenses for the military member or for the family at home. Then determine how much per day the military member will need, take that amount out in cash so it is easy to keep track of whether or not you are staying on budget. For example, you figure the military member will need an average of $5/meal, so $15/day. If they are going to be gone for 10 days, take $150 in cash. This way, if you are getting $30 per diem you know you will have an “extra” $150 this month to add to your emergency fund or paying off debt.

source: amandamanupella.com

Deployment

Although it is a misconception of making a ton of money while deployed, you do make slightly more, so take advantage of it to get your finances on track or a boost in the right direction. The pay increase during deployment depends on where you are deployed (hostile vs. non-hostile environment) and if you have dependents. If you are in a hostile region, you may have the “tax free” benefit although this benefit  has been dramatically decreased over the past year. At any rate, on average your income is most likely to increase by $400-$600 per month.

If you are deployed for 6 months, that is $2400-$3600, which is a good chunk of change that could pay off your credit cards or auto loan. Make your money work for you!

Expenses to Consider

  • Child Care: If the now-deployed spouse typically cares for the children while the other spouse works. The increased childcare expenses are going to need to be considered.
  • Restaurants: The spouse that is left to be a “single parent” will be exhausted at times and will be more likely go out to eat more often, consider this in your budget.
  • Entertainment: Family separation can be lonely for both spouses and children, be aware that your expenses for entertainment may increase. Do seek out free/cheap entertainment.
  • Care Packages: It is extremely important to help the deployed family member feel connected to home and keep his/her spirits up. So, don’t forget to add it into your budget. The large flat rate boxes currently (April 2014) ship for $15.45 to overseas military plus the goodies you are sending, meaning each care package could easily be $50.
  • Military Member’s Purchases: The deployed family member will be working 12 hour shifts and may be working weeks on end without a “day off”. They are going to desperately want to feel some normalcy. They may do this by buying things online. Try to allow some room in the budget for this, for example they could buy a couple movies a month.

source: passporthealthusa.com

Ways to Save Money

Although some expenses will increase while one spouse is on TDY or deployment there will be some expenses that decrease. Make these changes in your budget and apply the savings in these categories to your debt payoff or to your savings. You have to plan for every dollar, otherwise you won’t know where the extra money, “disappeared”.

  • Gasoline: The deployed spouse will not be driving to work, so you may be able to cut your gasoline/oil/car repair budget in half.
  • Car Insurance: If the vehicle that the deployed spouse drives is only going to sit in the garage/driveway while he/she is gone, consider removing the collision coverage. This may save you $30-80/month. If you have an auto loan on the vehicle, you will have to get pre-approval from your creditor first.
  • Utilities: With one less person living in your home, the use of water and electricity/gas (laundry, showers, etc.) will decrease. This won’t be a huge savings, but possibly $20-30/month.
  • Food: One less person to feed at home, so your grocery bill will decrease by about $100/month.
    • If the military member is receiving a per diem for food: buy some meals/snacks at grocery stores, if you are staying at a hotel that offers a complimentary breakfast take advantage of it, if eating at the chow hall is an option use it. Limit the number of fast food and restaurant meals, you can purchase your meals for half the amount else where.
  • Phones: Deployed military member’s phone contracts can be placed on “hold”, saving $50/month.
  • Cable and/or other subscriptions: If the deployed family member is the primary user of the cable/satellite or subscriptions you may want to consider placing them on hold. Most contracts can be placed on “hold” for 4-6 months if you call the company directly and request the contract be placed on hold because of “financial hardships”. This may free up $100+ in your budget.

 

Tips to Financially Make the Most of Deployments/TDY

  • Budget, Budget, BUDGET!!! With out a financial plan, all this “extra” money is going to be wasted and you will look back and wonder where it all went.
  • Prepare yourself for possible “traps”. All family members are going to have times when you feel sad, lonely, and bored but don’t medicate these feelings with shopping, frequently going out to dinner or happy hour with friends, or anything else that may cause havoc to your budget. Prepare by implementing healthy habits, such as exercise and inexpensive/free hobbies.
  • Avoid the “I deserve” attitude. You know what I’m talking about. My husband is deployed, so I deserve a pedicure. I haven’t seen my husband in 4 months so I deserve new shoes or a vacation “back home”. I was in the desert for 6 months, so I deserve a motorcycle. I have been working 12 hour shifts for days on end so I deserve a new computer. I may be exaggerating slightly, but try to catch yourself otherwise the small purchases do add up quickly.
  • Open communication. With spouses on opposite sides of the world, the last thing you will want to talk about is finances with the little time you do get to talk with each other. But you still need to have that monthly budget meeting. It will allow both spouses to feel a little at ease to know they are not dealing with finances “alone” and that the finances are on track and all the bills are being paid.

 

source: militarybankingrates.com

 

Financial Benefits while Deployed

  • Savings Deposit Program: This program allows military members to invest their pay into a savings account and earn 10% interest. The interest is taxable.
    • Eligibility: Military member must be receiving Hostile Fire/Imminent Danger Pay and serving in a designated combat zone or in direct support of a combat zone for more than 30 consecutive days or for at least one day for each of three consecutive months.
    • Savings: Deposits into savings account can begin on the 31st day of deployment. The monthly maximum that can be deposited is equal to the military member’s monthly-unallotted current pay and allowances. Deposits can not be made after the day of departure from deployment. You can earn 10% on a maximum of $10,000. Interest will continue to accrue for 90 days after departure.
    • Withdrawal: Your money will automatically be given back to you after 120 days of your departure from deployment. You can withdraw any money in excess of $10,000 at any time. You can request an early withdrawal once you have departed your deployment.
    • Examples: E-5 with 9 years experience, either single with no state-side expenses or married and the spouse’s income can cover expenses. Invests $3300 for the first 3 months of a 12 month deployment. Could earn $980 in interest, in a 15 month period (deployed for 12 months, invested in 90 days after return home). Suppose you can’t invest majority of your paycheck for 3 months, assume you can “afford” $250/month for a 12 month deployment. You could earn over $200 in interest, and after 15 months you would have just shy of $3000 in savings.
  • TSP Contributions
    • If you are deployed in a combat zone and receive the tax free benefit, then you are eligible for an increase in your TSP maximum limit. Typically, there is a $17,500 yearly limit, but if you are deployed and are tax exempt that limit is $52,000 annually (2014). Contributing more to your TSP while tax exempt isn’t the best option, because your TSP contributions are always pre-tax dollars. You will pay taxes on your withdrawals once you retire. So essentially you are taking “tax free” money and setting yourself up to pay taxes on it in the future.
  • Roth IRA Contributions
    • It would make sense to increase your Roth IRA contributions. These contributions are with after-tax dollars and then you don’t pay taxes on your withdrawals once you retire (59 1/2 years or older). Meaning, if your income is tax exempt because you are in a combat zone and you don’t pay taxes on it at withdrawal, you NEVER pay taxes on your contributions to a Roth IRA from combat zone/tax exempt income. The maximum contribution for your Roth IRA does not increase while deployed, $5,500 (2014).

 

So much information! Is your brain fried like mine??? LOL. Bookmark or Pin this article for future Deployments and TDYs! 🙂

 

We have been quite spoiled compared to military family standards and have been deployment and TDY free for nearly a year. But my husband has a short TDY this summer and then a longer one this winter. So, although the time apart stinks, hopefully it will put a big dent into our mortgage!

 

Has a deployment or TDY help your family finances?

What are your tips to save $$$ during deployments/TDY?

 

This post was shared at MilSpouse Bloggers Newwork Monthly Round Up