USAFA 401k

ServantoUSA

USAFA '22
I was recently appointed Class of 2022 and was wondering if you can start putting money into the 401k or TSP as a cadet or does that not begin until after commissioning.

Thanks for any help!
 

Stealth_81

Super Moderator
10-Year Member
Founding Member
You will have to wait until after you commission for the TSP. You can put money into an IRA/Roth IRA while at the Academy, however.

Stealth_81
 

ServantoUSA

USAFA '22
You will have to wait until after you commission for the TSP. You can put money into an IRA/Roth IRA while at the Academy, however.

Stealth_81
Thanks for the help! Is there a way to automatically contribute a portion of the paycheck albeit small to an IRA to avoid the temptation of spending it? Also, I was wondering if there is a way to pay a part of the ACE Loan beforehand so that your paycheck can be larger.
 

raimius

10-Year Member
Automatic funds transfers from your bank account works very well. (Fewer screw ups than relying on finance/dfas.)
 

FMHS-79

Parent
It was easy to setup to setup a USAA Roth IRA with automatic monthly investments (funded by direct transfer from his USAA checking account). We also setup a USAA investment account that we transfer additional funds to whenever my DS's checking account gets over $2,000. We'll use funds from his investment account for special items like his class ring, etc.
 

mommahedg

Parent
Our DS also did the USAA Roth IRA and set up monthly auto contributions from his USAA checking acct. We will move extra funds into an USAA savings account for class ring, plane tickets etc. It's great that so many of the cadets are already looking at saving money and investing.
 

AROTC-dad

Moderator
5-Year Member
Given their long time horizon and the fact that most cadets/mids will be in the lowest tax bracket during the SA/ROTC years, a Roth IRA generally makes the most sense until they are eligible for the TSP.
 

ServantoUSA

USAFA '22
Thanks for all the responses, but does anyone know about the ACE Loan? Is it possible to pay it down beforehand so that the paycheck is greater?
 

Stealth_81

Super Moderator
10-Year Member
Founding Member
The term ACE loan is not a USAFA acronym so that might be why no one is answering. I think the ACE (Advance for Clothing and Equipment) loan is for USNA.

The answer to your question is no, paying it early will not increase your paycheck. You will get the same net pay as everyone else and if the loan is payed early, the extra goes into a “held pay” account that you would get when the normal loan pay off time arrives. My son had this due to an outside scholarship that was applied to his loan each semester. He didn’t see the money until everyone else did.

Stealth_81
 

ServantoUSA

USAFA '22
The term ACE loan is not a USAFA acronym so that might be why no one is answering. I think the ACE (Advance for Clothing and Equipment) loan is for USNA.

The answer to your question is no, paying it early will not increase your paycheck. You will get the same net pay as everyone else and if the loan is payed early, the extra goes into a “held pay” account that you would get when the normal loan pay off time arrives. My son had this due to an outside scholarship that was applied to his loan each semester. He didn’t see the money until everyone else did.

Stealth_81
Oh, my apologies for the wrong term. hmm, interesting, Thank you though! I appreciate all of the insight everyone!!
 

FMHS-79

Parent
Since the cadet "Advance Pay" does not carry any interest/finance charges, I've suggested that my DS put all "extra" funds into an interest bearing account to help build a firm financial base.
 
Regarding the loan, I'm guessing you will have to wait and see. DS 2018 did have a higher paychecks his c4c or freshman year because of scholarships he took with him. The difference from other posters might be the type of scholarship ie for any college related costs. DS never inquired if he could use his savings to pay off the loan early. There was no need as no interest%.
 

Capri120

Parent
Regarding the loan, I'm guessing you will have to wait and see. DS 2018 did have a higher paychecks his c4c or freshman year because of scholarships he took with him. The difference from other posters might be the type of scholarship ie for any college related costs. DS never inquired if he could use his savings to pay off the loan early. There was no need as no interest%.
USAFA does not hold back funds. If you have scholarship or pay for other items in advance, you will see more money in your paycheck. DD has a 4 year scholarship that has been covering at least her books. She has a larger net paycheck as a result.
 

Stealth_81

Super Moderator
10-Year Member
Founding Member
USAFA does not hold back funds. If you have scholarship or pay for other items in advance, you will see more money in your paycheck. DD has a 4 year scholarship that has been covering at least her books. She has a larger net paycheck as a result.
I see that this has changed then. That is why I tend to moderate more than post. My information is now almost 10 years old and things change each year.

Stealth_81
 

ServantoUSA

USAFA '22
USAFA does not hold back funds. If you have scholarship or pay for other items in advance, you will see more money in your paycheck. DD has a 4 year scholarship that has been covering at least her books. She has a larger net paycheck as a result.
I see that this has changed then. That is why I tend to moderate more than post. My information is now almost 10 years old and things change each year.

Stealth_81
Thank you, both... I am very grateful for this forum! I accepted my appointment today feeling very confident in the information gathered.
 
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keeperkat90

5-Year Member
If your asking about the career starter loan that we receive as juniors at usafa, you don’t want to begin paying it off until graduation (unless you take navyfederals and Usaa’s) they want you to pay off the loan in $600 payments each month once you start. It’s a lot better if you invest the loan.
C/o 2018
 
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