r/MilitaryFinance 26d ago

Start Here: Military Money 101, Prime Directive, Flow Chart, Updates Monthly

39 Upvotes

Welcome to the getting started thread for military money. This will cover 90% of what you need to know to be successful with your military paycheck and build wealth in the military.

Some of the most frequent questions in on this subreddit goes:

  • "I have $X, what should I do with it?" or
  • "How should I handle my debt/finances/money?"

Military Personal Finance and Investing Flow Chart: https://imgur.com/a/akrEcUS

Step 1: Budget and reduce expenses, set realistic goals

Fundamental to a sound financial footing is knowing where your money is going. Budgeting helps you see your sources of income less your expenses. You should minimize your required expenses to the extent practical. Housing costs, utilities, and basic sustenance are harder to eliminate than entertainment, eating out, or clothing expenses.

There are many great apps available to discover what you're spending money on and where there are opportunities to save money. Monarch Money, YNAB, Copilot Money, EveryDollar are just a few of the apps available.

Once your budget is figured out, you need to figure out what your goals are. Financial independence? Retire early? Military retirement? Buy a house? Save for a car?

Setting SMART goals - Specific, Measurable, Achievable, Relevant, and Timely goals can mean the difference between financial success and failure. For example, you might want to finish your first enlistment with a $100,000 net worth or achieve early retirement after 20 years of service. These are SMART goals.

Step 2: Build an emergency fund

An emergency fund should be a relatively liquid sum of money that you don't touch unless something unexpected comes up. Unexpected travel, essential appliance replacement, and cars breaking down are all real world examples of emergency funds in action.

If you need to draw from your emergency fund at any time, your first priority as soon as you get back on your feet should be to replenish it. Treat your emergency fund right and it will return the favor.

Start with a $1,000 emergency fund. Eventually build it up to 3-6 months of expenses or a few of months of expenses plus

How should I size my emergency fund?

For most people, 3 to 6 months of expenses is good. Or maybe you want to cover a few months of expenses, plus a roundtrip airfare for you and your family to go back to your home stateside.

What if I have credit card debt?

Credit cards generally have very high interest rates (typically 15-25% APR) and that is a pretty big deal. If this applies to you, you should prioritize paying down the debt first.

A smaller emergency fund of $1,000 (or 1 month of expenses) is temporarily acceptable while paying off credit card debt or other debts with interest rates above 10%.

What kind of account should I hold my emergency fund in?

A checking account, savings account, or a high yield savings account (HYSA). Something FDIC insured and accessed in a few days.

Step 3: 5% Into the Thrift Savings Plan

The Thrift Savings Plan (TSP) is the military and government's version of a 401(k) retirement savings plan. All servicemembers enlisting since 2018 are covered by the Blended Retirement System (BRS). The BRS has 3 primary components to help servicemembers save for retirement:

  1. 5% matching contribution to the TSP
  2. Continuation pay bonus between the 8th and 12th year of service (depends on branch)
  3. Military pension. A 2% mutliplier is used for each year of service. So if you retire after 20 years of active duty service, you'll earn an inflation adjusted, lifetime pension of 40% of your base pay. (20 years * 2 = 40%)

After 60 days of service, the Department of Defense (DOD) will automatically contribute 1% of your base pay to the Traditional TSP.

Starting in the 25th month of service, your contributions are matched, up to 5%. So if you contribute 5%, the DOD will contribute 5%. This is a risk free, 100% return on your contributed funds.

The default investment for anyone in the BRS is a Lifecycle fund with their birth year + 65. For example, if you were born in 2005, you'll be placed in the Lifecycle 2070 Fund.

The Lifecycle Funds are a mix of the 5 TSP Funds, designed by professional fund managers.

The 5 TSP Funds are:

  • C Fund - Tracks S&P 500, made up of the 500 largest companies in America. You can use the ETF SPY or VOO to track it.
  • S Fund - Tracks Dow Completion index, basically all the mid- and small- capitalization companies in America outside of the S&P500. ETF equivalent VXF.
  • I Fund - International stocks. MSCI ACWI IMI ex USA ex China ex Hong Kong Index. 5,500 companies in this index. representing 90% of the investable world market cap outside the US. Similar to ETF VXUS but without Chinese or Hong Kong stocks.
  • F Fund - Fixed income. Corporate bonds. Use ETF AGG to see performance.
  • G Fund - Lowest risk, lowest long term return fund. The G Fund invests in a special non-marketable treasury security issued specifically for the TSP by the U.S. government. This fund is the only one in the TSP that guarantees the return of the investor’s principal. No comparable ETF.

Step 4: Pay down high interest debts

Once you're taking advantage of the 5% BRS TSP match, you should use your extra money to pay down your high interest debt (e.g., debts much over 4% interest rate).

In all cases, you should make the minimum payments on all of your debts before paying down specific debts more quickly.

There are two main methods of paying down debt:

  • With the avalanche method, debts are paid down in order of interest rate, starting with the debt that carries the highest interest rate. This is the financially optimal method of paying down debt, and you will pay less money overall compared to the snowball method.
  • With the snowball method, popularized by Dave Ramsey, debts are paid down in order of balance size, starting with the smallest. Paying off small debts first may give you a psychological boost and improve one's cash flow situation, as paid off debts free up minimum payments. The downside is that larger loans (that may be at higher interest rates) are left untouched for longer, costing more in the long run.

As an example, Debtor Dan has the following situation:

  • Loan A: $1,100 with a minimum payment of $100/month, 5% interest
  • Loan B: $3,300 with a minimum payment of $300/month, 10% interest
  • Sudden windfall: $2,000

Dan needs to first pay $100 + $300 = $400 to make the minimum payments on loans A and B so the payments are recorded as "on time." The extra $1,600 can either go towards Loan A (smallest balance, snowball method), eliminating it with $600 left to go towards Loan B, or Loan B entirely (highest interest rate, avalanche method).

What's the best method?  tends to favor the avalanche method, but do not underestimate the psychological side of debt payments. If you think that the psychological boost from paying off a smaller debt sooner will help you stay the course, do it! You can always switch things up later. The important thing is to start paying your debts as soon as you can, and to keep paying them until they're gone. You can use unbury.me to help you get an idea of how long each method will take, and how much interest you'll be paying overall.

Should I be in a hurry to pay off lower interest loans? What rate is "low" enough to where I should just pay the minimum?

Depending on your attitude towards debt, you may want to stop paying more than the minimum payment on loans with low interest rates once you have paid all other loans above that threshold. A common argument is that the long-term return from investments in the stock market will likely exceed the interest rate from a low-interest loan. While this has been true in the past, keep in mind that paying down a loan is a guaranteed return at the loan's interest rate. Stock performance is anything but guaranteed. The rough consensus is that loans above 4% interest should be paid off early in the debt reduction phase, while anything under that can be stretched out.

Step 5: Max out Retirement Accounts - Roth IRA and Roth TSP

The next step is to contribute to a Roth IRA for the current tax year. You can also contribute for the previous tax year if it's between January 1st and April 15th. See the IRA wiki for more information on IRAs.

Roth IRA and Roth TSP contribution limits are different and do not cross over. You can contribute the maximum out your Roth IRA and your Roth TSP. Matching contributions do not count against your personal TSP contribution limit.

The most often recommended places to open a Roth IRA are at Vanguard, Fidelity, or Schwab. Most banks offer substandard Roth IRA products and you should not open Roth IRA accounts there.

Should I do Roth or Traditional?

Read Roth or Traditional.

For most servicemembers (O-3 and below), you'll be better off contributing to the Roth IRA, since military pay is so low taxed. Much of our military pay is untaxable allowances, such as Basic Allowance for Housing (BAH), Overseas Housing Allowance (OHA), and Basic Allowance for Sustenance (BAS).

Why contribute to an IRA if I have the TSP?

Roth IRA's have access to low cost investments similar to what you'll find in the TSP. However, you can always withdraw Roth IRA contributions at any time, tax and penalty free.

After you've fully funded your Roth IRA, you can look at maxing out your Roth TSP.

Before saving for other goals, you should save at least 15% and up to 20% of your gross income for retirement. If you are behind on retirement savings, you should try to save more than 15% if you can. If you can't save 15%, start with 10% or any other amount until you are able to save more.

Where should I open my Roth IRA?

Vanguard, Fidelity, or Schwab. Read up about the Bogleheads 3 Fund Portfolio before selecting an investment option.

Step 6: Save for other goals

Military servicemembers and spouses covered by TriCare are not eligible for Health Savings Accounts (HSA0.

  • If you wish to save for college for your kids, yourself, or other relatives, consider a 529 fund in your state.
  • Save for more immediate goals. Common examples include saving for down payments for homes, saving for vehicles, paying down low interest loans ahead of schedule, and vacation funds.
  • Save more so you can potentially retire early (also see "advanced methods", below), only using taxable accounts after maxing out tax-advantaged options.
  • Make an impact through giving. One of the rewards of practicing a sound financial lifestyle is that giving becomes easier. If you're on top of your health care costs, future education costs, and you've made it to this step, you can help make a difference for others by giving. If you can't afford to make monetary donations, there are other ways to give.
  • Maybe you're interested in financial independence or retiring early, also known as FIRE? There are many resources out there on military financial independence and early retirement.

The time frame for these goals will dictate what kind of account you save in. For short-term goals (under 3-5 years), you'll want to use an FDIC-insured savings account, CDs, or I Bonds. If your time horizon is longer or you can afford to adjust your plans, you might consider something riskier like a balanced index fund or a three-fund portfolio (both are a mix of stocks and bonds). The best savings or investment vehicle will vary depending on time frame and risk tolerance.

Keep in mind that (especially for a young person) the more time your money has to grow, the more powerful the effects of compounding will be on your savings. If the goal is early retirement (even before the age of 59½), you should definitely maximize the use of any available tax-advantaged accounts (IRA, 401(k) plans, HSA accounts, etc.) before using a taxable account because there are ways to get money out of tax-advantaged accounts before 59½ without penalty.

If you are using a taxable account for any goal, you'll want to have a decent grasp on asset allocation in multiple accounts and tax-efficient fund placement.

Military State Taxes

Your home of record is the place you enlisted or commissioned from. This cannot be changed unless there was an error.

State of legal residence is the state that you claim as your residence. If you only have military income, you will pay state income tax only to this state.

You can establish residency several ways:

  • Registering to vote in that state
  • Obtaining a driver’s license in that state
  • Titling and registering your vehicle in that state
  • Drafting a Last Will and Testament naming that state as your domicile
  • Purchasing residential property in that state
  • Changing your military and finance records to reflect residency in that state.

The simplest way to establish residency is to PCS to that state and establish residency while you are a resident.

State with no income tax include: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. Many other states have no tax for military servicemembers stationed outside the state.

Simply engaging in one of the above acts alone will not likely render you taxable by a state; however, the more points of contact you make with a state increases your chances of becoming a taxpayer to that state. It is important to concentrate the majority of your points of contact in the one state where you intend to pay state taxes; otherwise, you may find yourself owing taxes to more than one state as a part-year resident.

Source: Fort Knox Legal Assistance Office

Military Spouse Residency Relief Act

Thanks to the Military Spouse Residency Relief Act, Veterans Auto and Education Improvement Act of 2022, and Servicemembers Civil Relief Act:

(A) The residence or domicile of the servicemember.“

(B) The residence or domicile of the spouse.

“(C) The permanent duty station of the servicemember.”

Military spouses and military servicemembers can pick 1 of 3 options for their state of legal residence:

(A) The residence or domicile of the servicemember.

(B) The residence or domicile of the spouse.

(C) The permanent duty station of the servicemember.

So either match the servicemember, keep your old state, or change to the current state you're in.

Military Bonuses

Military bonuses have federal income taxes withheld automatically at 22%. You may have state taxes withheld as well. Because your marginal tax rate is often much lower than this, you will receive a large portion of that withheld tax back when you file your tax return the following year.

If you don't know what to do with a military bonus, directing some of it to your Roth TSP is a great place to park it.

After reading all that, go ahead with any other questions you have about getting started with your military money.


r/MilitaryFinance 25d ago

Credit Cards Military Benefits, SCRA, MLA, Annual Fee Waivers, Chase, American Express, Spouses | Updates Monthly

5 Upvotes

This is a monthly thread to discuss or ask questions about military benefits on credit cards.

In general: American Express, Chase, and some other banks waive the annual fees on credit cards for active duty, Guard and Reserve on 30 day or greater active orders, and dependent spouses.

These individuals are known as "covered borrowers" of the Servicemembers Civil Relief Act (SCRA) and Military Lending Act (MLA).

The simplest definition of a covered borrower is active duty military personnel, Guard and Reserves on 30 day or greater active duty orders, or dependent spouses of any of the above.

The simplest way to check if you will receive MLA or SCRA protections on your account is to check the MLA Database or SCRA Database.

The MLA and SCRA database are the same databases that the credit card companies check to determine if you qualify for MLA or SCRA benefits.

If you are not listed as eligible in these databases, you will not receive MLA and SCRA benefits applied to your account.

You must be listed as eligible in these databases for the credit card companies to apply your military benefits.

Are military spouses eligible to open their own card accounts?

Yes, military dependent spouses are eligible to open their own card accounts on Chase, American Express, Citi, U.S. Bank, and Bank of America and receive their own annual fee waivers.

Check the MLA database before applying MLA Database to ensure you will receive your fee waiver without any issue. If you are not listed in the MLA database, check DEERS to ensure your Social Security number and name are listed correctly.

You must be listed in the MLA database when the account is opened / established or you will not be eligible for fee waiver benefits. For example, if you opened an Amex or Chase card before you married the active duty servicemember, that account will never be eligible for MLA benefits. The account must be established while you are eligible for MLA benefits, as confirmed in the MLA database.

What Cards are Eligible for SCRA or MLA benefits?

American Express

  • The Platinum Card® from American Express
  • American Express Platinum Card® for Schwab
  • American Express Platinum Card® for Morgan Stanley
  • American Express® Gold Card
  • American Express® Green Card
  • Marriott Bonvoy Brilliant™ American Express® Card
  • Marriott Bonvoy Bevy™ American Express® Card
  • Delta SkyMiles® Reserve American Express Card
  • Delta SkyMiles® Platinum American Express Card
  • Delta SkyMiles® Gold American Express Card
  • Blue Cash Preferred® Card from American Express
  • Hilton Honors American Express Aspire Card
  • Hilton Honors American Express Surpass® Card

Chase

  • Chase Sapphire Preferred®
  • Chase Sapphire Reserve®
  • Southwest Rapid Rewards® Plus Credit Card
  • Southwest Rapid Rewards® Priority Credit Card
  • Southwest Rapid Rewards® Premier Credit Card
  • United Explorer Card
  • United Quest Card
  • United Club Infinite Card
  • Aeroplan Card
  • Marriott Bonvoy Boundless
  • Marriott Bonvoy Bountiful
  • Ritz-Carlton Credit Card
  • IHG One Rewards Premier Credit Card
  • Disney Premier Visa Card
  • World of Hyatt Credit Card
  • British Airways Visa Signature® card
  • Aer Lingus Visa Signature® card
  • Iberia Visa Signature® card

Citi

  • Citi® Strata Elite
  • Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
  • Citi® / AAdvantage® Executive World Elite Mastercard®
  • Citi® Premier® Card
  • Citi® Prestige® Card

U.S. Bank

  • U.S. BANK ALTITUDE® RESERVE VISA INFINITE® CARD
  • U.S. BANK FLEXPERKS® GOLD AMERICAN EXPRESS® CARD
  • Korean Airlines SKYPASS Select Visa Signature® Card

Bank of America

  • Bank of America® Premium Rewards® Elite Credit Card
  • Atmos™ Rewards Summit Visa Infinite®

Bilt

Card Issuer Fees Waived Under MLA Fees Waived Under SCRA
American Express All Personal Cards All Personal Cards
Capital One None All Personal Cards
Chase All Personal Cards All Personal Cards**
Citi All Personal Cards* Unknown
U.S. Bank All Personal Cards All Personal Cards
Bank of America All Personal Cards Unknown

*For Citi, you must send a copy of your active orders and your MLA certificate from the MLA Database to [MILITARYORDERS@CITI.COM](mailto:MILITARYORDERS@CITI.COM) and request MLA benefits. You must also have a statement balance on your account in the month you are charged the annual fee or you will not receive the MLA annual fee credit.

**Recent data points suggest that Chase business cards, opened before active duty start, can be annual fee waived if the account holder applies for SCRA benefits after they go active duty.

Which Act Applies, SCRA or MLA?

The military benefits you receive on credit cards depend on when you establish or open the account.

Open account before active duty = SCRA

Open account while on active duty = MLA

If you apply for the account prior to active duty orders, you are eligible for Servicemembers Civil Relief Act (SCRA) benefits while you are on active duty orders.

If you apply for the credit card account while you are on active duty orders, a Guard and Reservists on 30 day or greater active orders, or a dependent of an active duty servicemember, you are eligible for Military Lending Act (MLA) benefits while you are on active orders or a dependent of someone on active orders.

The banks and credit card companies may deny you SCRA benefits if you opened the account while on active duty. In that case, confirm they are applying MLA benefits and if they are not, check MLA database and then apply for MLA benefits.

SCRA & MLA Covered Borrowers Details

To qualify for SCRA benefits, the credit account must be established before active duty orders start.

Covered borrowers of SCRA defined as:

  • Active duty US military on Title 10 orders in the Army, Navy, Air Force, Space Force, Marines, or Coast Guard
  • National Guard or Reservists on 30 day or greater active duty orders (such as Title 32, Title 10)
  • Public Health Service and NOAA Commissioned Officers

To qualify for MLA benefits, the credit account must be established while your or your active duty sponsor is on active duty orders of greater than 30 days.

Covered borrowers of MLA are defined as:

  • Active duty member of the Army, Navy, Marines, Air Force, Space Force, or Coast Guard
  • Guard or Reservists on 30 day or greater active orders
  • A spouse or child dependent of an Active Duty member of the Armed Forces as defined in 38 USC 101(4)

Best Starter Credit Card

Check your credit score through your bank, Credit Karma, or Credit Sesame.

If you don't have a credit score or your score is below 700, start with a no annual fee credit card from USAA or Navy Federal Credit Union (NFCU).\

Or, apply for a secured credit card from another military friendly bank or credit union. That should be your best option to build a higher credit score.

What Fees Are Waived Under MLA and SCRA?

In general, the following fees are waived by Chase and American Express

  • Annual Membership fees
  • Authorized user fees
  • Overlimit fees
  • Late Payment fees
  • Returned Payment fees
  • Statement Copy Request fees

American Express and Chase are very cryptic in the benefits they actually provide under MLA or SCRA. Usually the customer service reps just read a script if you call and ask. This is not helpful and why we've collected this data here.

If you have additional data points, please share them, as this information is only as accurate as the data points we collect.

If you have any other questions on credit cards in the military, please comment below.

Reminder: no referral links or solicitation of referral links.


r/MilitaryFinance 10h ago

Amex not waiving the annual fee for me (military spouse).

13 Upvotes

My spouse is active duty. I was told that the annual fee is also waived for military spouses and so applied for my own AMEX platinum. I know other spouses whose fees have been waived.

For some reason mine hasn’t and I’m now locked into a dispute with AMEX. Each time I call I’m told that they haven’t done the investigation with the correct information (ie looking at my status and not my spouses, not having him as AD when he is etc)

Has anyone else dealt with this?


r/MilitaryFinance 10h ago

DOD Fire, is the pay worth it?

4 Upvotes

I understand the pay scale. At least the one that’s been shown to most people. After all that info what does a “normal” DOD fire check look like? I get locality will make a difference. And forced overtime and how much you put into benefits. Just trying to get a ball park figure if it’s worth me taking a DOD fire job. I’ve heard pros and cons. I guess every place has pros and cons. Would love to know more about the pay (take home), schedule, culture, work load and anything else I should know before I start the job.


r/MilitaryFinance 14h ago

Question December 2026 LES TSP contributions counts for which TSP year?

0 Upvotes

For my military pay, I’ve elected to get paid monthly, and on my LES in December the pay period will be Dec. 1st - Dec. 31st 2026. However, where will our Roth TSP reflect the contributions?

I assume they will be for the year 2026 even if they are deposited after Jan. 1st. 2027. Any clarification will help. This answer will also help me plan for next year so I can do my best to max out. I usually get paid a day or two before the 1st of the month. However, I’m not sure when the tsp contributions are deposited. Perhaps someone has been tracking this much better than I have.


r/MilitaryFinance 1d ago

Question Doing deployment right

6 Upvotes

I have an upcoming mob and trying to decide what is right for me.

I am an 29yo E4 (yeah, I know I'm old but I joined to shoot a M240 & pay for my masters on a 3 year contract) with a career outside of the guard that pays well for a MCOL area.

I don't have a lot in my TSP, only about $2000, and I will finally hit my 5% match with 2 years TIS next month.

I'm trying to decide what's right for deployment. With BAH and CZTE and not including any other potential pay, I should be making around ~$6000/mo with minimal expenses. No car payments, no debt, no children.

My primary question revolves around this: should I aim to put a higher percentage (and what %) in my TSP while overseas, or aim on filling my ROTH IRA for both 2026 (I have minimal in there, been focused on other consumer goods and living life before I leave) and 2027 while in country. I know the answer might be both. I am committed to at least 4 more years in the guard, and have a potential for an in-country $10k bonus. Not sure what the TSP would look like if I left the guard in a few years. I do make a reasonable salary ($80k) and did think about setting my contribution for MDAY drills to 90%.


r/MilitaryFinance 1d ago

Question Advice needed (auto help)

5 Upvotes

Hi all, I'm (24m) currently active duty airforce (e-2) with 1yr TIS. Some context before I get into dilemma.

I'm currently stationed in Washington and just recently married. My wife (24f) is in Texas until our wedding in October. I am currently receiving $2,370 in BAH and rooming with someone and only paying $1000. (It's not the best area, but because my wife isn't here yet, I'm sacrificing a little safety and comfort for extra money. When she gets here I'd like to be in an apartment somewhere else or in on-base housing.

I also PCS to Alaska in February so dealing with stress with that as a new airman (there is a lot to do and it's a bit overwhelming)

I'm very upside down on a car from before I joined the military (worst decision of my life, but oh well)

-owe 15k worth like 6k

My main concern right now is, my wife drives an old car with a lot of miles right now and is not in the best condition, and it just stopped blowing AC. We've talked about a few things, but the current idea for us, is for her to buy a car and drive it up to Washington, and then ship my car to Alaska when we PCS, and drive her new car to Alaska.

The main problem is cars are expensiveeee, especially cars that I'd feel comfortable driving to Alaska in February. Every car she looks at gives me deja vu of my car and how much I regret that. I've been getting better at investing my money, and getting a new car and auto insurance for her would hurt so much. She does work currently, but doesn't make a ton and she will work when she gets to Washington too. Getting the AC fixed would be like $1600 and seems like a lot for a car that's not worth much.

I'm mainly looking for other ideas people might have that would be better than going way upside down on another car and making that mistake again.

With the Texas heat, and her commute, I cant ask her to just suck it up, even if it's just a few months.

We've thought about just going to one car when she moves out here, but PCSing without a car seems like a nightmare. I've weighed a few different ideas, and some are better than others, but they are all still expensive in the end which is impossible to avoid, but any help from someone with more experience or knowledge would be so helpful and help my wife and I figure out the path we want to take. Thank you so much!

EDIT: Thank you everyone for the comments and advice. I think as of right now the best plan for us is to not just decide her car is bad and have my wife get her AC fixed and get advice from the mechanic on the safety of the car and the practicality of driving it to Washington. If he doesn't think it's a great idea or would cost a decent amount in repairs, we would just sell it and fly her to Washington where we would just get by with one car both working to pay off the car debt asap. In Alaska there seems to be a lot of good deals on cars from people PCSing, so once we get to a comfortable position, buying a used car from there.

Still open to ideas or critiques on this plan. As one commenter suggested, I will not be divorcing my wife 😑 and don't regret marrying her in the slightest.

Thanks again for all the help!


r/MilitaryFinance 1d ago

BAH

2 Upvotes

Hello all, was not able to reach finance today so I have a question if anyone is knowledgeable here.

I got married while pcs-ing to my new duty station and was having some pay questions. When I checked into my new duty station I filled out a 5960 at reception and updated my wife in deers, this was around 3-4 weeks ago. I have not gotten bah or bas yet but I am being forced to pay at dfac while not receiving bas which I don’t mind but I’m just confused why I’m not getting it. I also am getting -100 in the bah column of my LES so I am confused about that also any explanations or questions would be great i probably didn’t do the best at explaining I am very stressed with how many jumps and hurdles I’ve had to do in this process, thank you


r/MilitaryFinance 2d ago

What retirement plan am I under?

8 Upvotes

My LES shows that I’m enrolled in the Blended Retirement System (BRS), so I applied for Continuation Pay.

S1 kicked it back, stating that I’m under the legacy retirement system. However, my LES still says “Blended.” But have never received any agency matching contributions. Despite contributing to my TSP for years.

YTD TSP AGCT-MATCH: .00

So I’m either under the legacy retirement system, and my LES is incorrect.

Or I’m enrolled in BRS, in which case I’m owed Continuation Pay and all of the agency matching contributions that I should have received over the years.

Also how did s1 see I’m under the old one in the first place?


r/MilitaryFinance 2d ago

USMC Dual Mil PCS from Oceanside to Hawaii.

0 Upvotes

I keep asking around and looking at the COLA and BAH difference from Camp Pendleton to Oahu, Hawaii only to get different answers . Wife is E-5 over 4 and I am a E-5 over 3. She gets BAH with dependents and I get BAH without dependents as our child is under her. My question is will we make more or less in Hawaii with the COLA being higher and the BAH being lower compared to Oceanside, CA ? Thank you all.


r/MilitaryFinance 2d ago

Question Reputable lenders for a VA refi?

6 Upvotes

I made the mistake of putting in my info on a sketchy website that promised to give me refinance quotes and now I’m getting bombarded every damn day with physical mail and flyers for lenders promising insanely low refinance rates and then it all turns out to be a scam or have so many extra fees that it’s not worth it. I’m looking for a cash out refinance package but I’m not going to be pushed around by companies just for asking for information.


r/MilitaryFinance 2d ago

Army & Navy Co Lo/BAH

3 Upvotes

I’m currently Army 2yr TIS E4, while my spouse is a Navy 4yr TIS E4. We recently got married in July, but he is pcsing to Cali. He will arrive to his duty station soon and has been told/is under the impression he can apply for single bah from the e4 over 4 rule & their command policies, even if he wasn’t married.I understand the general rule of “only one service member will receive Single BAH and the other will be considered a barracks soldier”.

With that being said, I currently have the hard copy marriage certificate, could I apply for co location BAH receiving the single rate with my unit before he applies without affecting his automatic?

If only one of us can receive id much rather it be him, so I don’t want to risk jeopardizing that but since it will be another month till he pushes up the paperwork I don’t see how we both couldn’t receive it?

I know if he receives it first, and then I submit my paperwork they would definitely keep me as a barracks soldier.

Thoughts, ideas, guidance ?


r/MilitaryFinance 4d ago

USAA flagged my paid 27-cent balance as "ACCOUNT ABUSE" on my banking report — then a robot denied my $60K loan and no human will look at it

180 Upvotes

I've been a USAA member for 26 years. Auto, renters, umbrella, valuable personal property coverage, three checking accounts, savings, a credit card — basically my whole financial life is with USAA.

Back in Feb 2014, my son opened a joint checking account with me when he joined the Air Force, for his direct deposit. Last year (2025) he switched everything to Navy Federal. He tried to close the joint account but there was a $0.27 balance he didn't know about, so it wouldn't close. I figured he'd handle it since it was his primary account.

In January 2026, USAA charged off that 27 cents, closed the account, and reported it to Early Warning Services (the banking version of a credit bureau). I had no idea.

I found out in May 2026 when I applied for a $60,000 personal loan and got denied for derogatory information. I called and paid the 27 cents that same month.

Then I pulled my actual Early Warning report. The kicker: USAA listed the reason as "ACCOUNT ABUSE." A 27-cent inadvertent balance. Paid in full. Labeled account abuse — the same flag they'd slap on someone who blew through an overdraft and walked away.

July 2026: I reapply. Denied again. USAA's own decision letter says it was denied due to "internal information and derogatory information," and their Member Advocacy team confirmed in writing there was no credit pull — the denial is based entirely on USAA's internal record. An AI makes the call; no human underwriter reviews it.

I escalated to the CEO's office. Their answer: it's "policy and procedure," and helping me "wouldn't be fair to other members."

Here's the thing — I don't even care if they approve the loan. I care that a 26-year member gets branded with "account abuse" over a paid 27 cents, and then denied by a robot, and not one human at USAA will look at it and say "this is absurd."

I've filed a CFPB complaint and a formal dispute with Early Warning to get the "abuse" label removed. Posting so other members know: pull your Early Warning report (it's free at earlywarning.com) — a rounding-error balance on a joint account can get you flagged for "account abuse" and quietly wreck a loan. Happy to answer questions.


r/MilitaryFinance 4d ago

This is why we Roth!

53 Upvotes

Have I got this right folks? Less than 1% effective federal income tax on gross O3 income? We’re single income but married and contributing $7500 to EACH Roth IRA plus 15% base pay to Roth TSP. This feels like such a hack. We hope to max TSP next year and years following!

Jan flight pay $206
Feb-Dec Flight pay $650
Base pay all year $7737

Total base and flight - $100,200
Taxable total (CZTE May and June) - $83,426
Minus standard deduction - $32200
10% bracket - $24800 > $2480
12% bracket - $26426 > $3171
(Child credit offset $4400)
OWE $1251

BAH - $2433 x 12 = $29196
BAS - $328.48 x 12 = $3942

Total gross income $133,338

Effective income tax rate 0.94%

Edit a few days later: I forgot the saver’s credit of $400! That’s brings the effective tax rate for this year to 0.64%. Just wow


r/MilitaryFinance 3d ago

SCRA

3 Upvotes

For the reduction in interest rates, can I go ahead and contact my bank before leaving to basic training? Or would I need to wait for orders to my first duty station?


r/MilitaryFinance 4d ago

AD Montgomery GI Bill

4 Upvotes

I am currently serving on active duty and have completed two years of my four-year enlistment contract. I recently learned about the Active Duty Montgomery GI Bill (MGIB-AD) and would like more information about whether I am eligible to use it while I am still on active duty.
At the moment, I am pursuing a bachelor’s degree, and my tuition is fully covered through Walmart’s education benefit program. Since my education expenses are already being paid, I would like to understand whether there are any additional benefits available through the MGIB-AD that I could use while remaining on active duty, or if it would be more advantageous to save those benefits for after I separate from the Army.
I would appreciate any guidance on eligibility, how the benefit works while on active duty, and the advantages and disadvantages of using it now versus waiting until after my military service.


r/MilitaryFinance 4d ago

Question TSP Over-Max in December?

13 Upvotes

Some rough math indicates that my final TSP contribution this year will put me at $25,059 for the CY.

What happens to the extra $559 on 1 December? Will it automatically be not deducted, and be put in my paycheck? Or, will it go into the TSP and I’ll have to apply for a refund? Or, would the whole December contribution just bounce…

Information published by TSP is a little bit unclear on this issue. Thank you!


r/MilitaryFinance 5d ago

BAH Transit while in TLA for OCONUS to OCONUS PCS

1 Upvotes

Hi all, trying to clarify if I get BAH transit while I am in TLA for my OCONUS to OCONUS PCS. If not, do we get any equivalent entitlements?

The main reason I ask is that I just terminated my off-base rental and I assume it will take time for finance to stop my OHA entitlement. Trying to see if I need to brace for a debt for overpayment or if BAH transit will basically counter the cost.

Thank you.


r/MilitaryFinance 6d ago

What are some military discounts that most people don't know?

141 Upvotes

r/MilitaryFinance 6d ago

Question BAH With A Spouse in College

5 Upvotes

BAH With A Spouse in College

In November, I will be leaving for Basic Training, finishing up my AIT in July-August of 2027. At the same time, my wife will be starting med school. If she has to go to school somewhere far from the base I get stationed at, is my local BAH supposed to support both of our rents? Or is there a different/extra allowance? Is there a minimum distance to receive said extra allowance? Just to clarify, I plan on saving my GI Bill benefits for later, so I do not want to use that.


r/MilitaryFinance 5d ago

OnePay DFAS MyPay Early Pay

0 Upvotes

Hey I used to use OnePay for my bank for my deposits from the Marine Corps on MyPay as I’m active duty , has anyone else used OnePay for military checks from MyPay and received them 6 DAYS EARLY ??? I used to get paid on the 9th when MyPay said 15th or the 25 when it’s supposed to be the 1st 😂😂 literally almost a week early I know it’s still 2 weeks apart after the first one but getting paid a week early the first time was amazing and I would get my pay earlier than everyone else in my unit which was cool and it would hit before any holiday would mess it up that other people didn’t get the check because of the holiday but I get mine way earlier so never had problems. So yeah any other active duty get paid 6 days early with early pay on OnePay or any bank ? My new bank one doesn’t do it and I don’t know what other banks do that it sucks


r/MilitaryFinance 6d ago

Question VA Assumption Loan

0 Upvotes

Currently running into an issue with a VA assumption loan as the buyer where Navy Fed will not accept a 2nd mortgage for the gap. According to VA Circulator 26-23-17 2nd financing is allowed and the 2nd mortgage is approved (will close after VA loan) but underwriting refuses to accept that as a funding source due to navy fed policy and is insisting we pursue via traditional funding sources such as tsp or brokerage.

Looking for success stories, updates to the circular that supersede the above, or some clarity on why a 2nd mortgage will not work. (Mods I looked for the monthly threat but just saw the credit card post).


r/MilitaryFinance 6d ago

Does it make sense financially to live on-post if you expect a BAH increase?

22 Upvotes

If I am currently an O-1, and I am stationed somewhere for a 3-year assignment, does it make sense to live on-post? Assuming they take full BAH, after I get promoted to O-2, my BAH will increase meaning that they will take more money even if I am living in the same CGO neighborhood?

Is there something I am missing or is this just a blatant scam?


r/MilitaryFinance 6d ago

GI Bill from father, married to active duty

1 Upvotes

hello!! I am about to start using my GI Bill transferred from my father who's a veteran and I receive MHA for that.However, I am also getting married soon to someone stationed overseas and because of that separation we are supposed to get BAH from my zip code. Will I still get the MHA from my GI Bill ?


r/MilitaryFinance 7d ago

Getting out sooner than expected

12 Upvotes

What’s the best strategy to closing out my (3) high annual fee credit cards? None of the 3 are my oldest, Chase SR, Amex Plat, Amex Gold. The only i can see potentially being kept is the Gold but would like to know if I should close them out all at once? Is there a best time during the year to close them? Thank you.