Discussion in 'Naval Academy - USNA' started by lga, Apr 12, 2010.
Does the academy or military in general offer a retirement savings plan like 401k?
Thirft Savings Plan (TSP)
The Thrift Savings Plan (TSP) is the federal version of the 401k, available to military and civil service employees. To the best of my knowledge, midshipmen and cadets are not eligible to contribute. The minute they are commissioned, yes. Prior enlisted may already have a TSP account set up, but I don't believe they can contribute while they are at an SA, but it continues to grow.
Similar to civilian employers, there is a choice of funds, as well as targeted funds. The TSP follows all the usual 401k rules in terms of portability, withdrawal dates, maximum amounts, etc.
This is in addition to the defined benefit (military pension plan), at this time available to those with 20 or more years of service. Way too much to go into here, but it's one of the best deals around, but the vesting date is 20 years. All that 365/24/7 availability, going in harm's way, obeying orders, moving every 2-3 years and sheer hard work does earn a decent retirement pay and other benefits.
The DOD doesn't contribute to your TSP which is different from some civilian employers. On the flip side, your benefits (Tricare, Commisary, Exchange, MWR) and tax free BAH should make up for that in the short run. Stay around for 20 or more and the retirement will take care of it in the long run.
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