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Financial Field Manual: A Personal Finance Guide for Military Families PDF

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p r es e n ts THE FINANCIAL FIELD MANUAL A Personal Finance Guide for Military Families INCLUDES NEW 2018 RETIREMENT PLAN RULES! s p o n so r e d by Help for U.S. Military Personnel and Their Families embers of the military face fnancial chal- of the guide for military families would not be possible lenges most people don’t experience. They without their generous support. M have to move frequently—sometimes on Kimberly Lankford, the author of the guide, has years short notice—and may have to deploy to combat zones of frst-hand experience with these issues. A longtime for months or years. columnist for Kiplinger’s Personal Finance magazine, she is But they also have access to valuable benefts and also a military spouse. Her husband recently retired after investing options not available to the general public, serving as an Army doctor for 21 years during which he including special tax breaks, low-cost investments, was deployed three times to Afghanistan and Iraq. legal protections, educational opportunities, insurance Many of the strategies, resources and benefts discussed programs and other resources. Learning how to make in this guide have helped Kimberly’s family over the the most of these opportunities can help secure your years. Our goal is that they can help bolster your family’s family’s fnancial future. fnancial security, too. To help make sure that military families make the Thank you for all you do in the service of our nation. most of these opportunities, we are pleased to present the third edition of Kiplinger’s Financial Field Manual, our popular personal fnance guide for the men and women who serve our nation. In addition to compre- hensive information and advice on critical issues, this edition explores valuable new benefts. The military retirement system will change signifcantly in 2018, and many servicemembers will have to choose wheth- er to remain in the current system or opt for the new program. KNIGhT A. KIPLINGER DoN M. BLANDIN In these pages, you will fnd practical, easy-to-under- Editor in Chief, Kiplinger’s President and CEO of the Investor Protection Personal Finance and Kiplinger.com Trust and the Investor Protection Institute stand information to help you make decisions about the new retirement plan, make the most of other new Find more information to help you manage savings opportunities, prepare fnancially for de- your personal fnances at Kiplinger.com and at ployment, take advantage of special benefts and tax InvestorProtection.org and iInvest.org. breaks, protect yourself from scams that target service- members, and get ready for a smooth transition to civilian life when you leave the military. IN ThIS ISSUE Kiplinger has been helping consumers for many 1 Investing in Your Future years. When Kiplinger Magazine (now called Kiplinger’s Personal Finance) launched in 1947, a driving 5 Your Military Benefts motivation was to provide sound, unbiased personal 8 Before and After Deployment fnance advice to military personnel returning to the 11 Buying and Selling a home workforce after World War II. 13 Financial Fraud Watch The Investor Protection Trust and the Investor Pro- tection Institute are similarly committed to helping 15 Leaving the Military military personnel. These nonproft organizations are 17 Financial Resources devoted to innovative investor education and proudly support several programs to help members of the mil- Copyright © 2016 by The Kiplinger Washington Editors, Inc. All rights reserved. Published by The Kiplinger Washington Editors itary make smart fnancial decisions. This new edition 1100 13th Street, NW, Ste. 750 | Washington, DC 20005 | 202-887-6400. Investing in Your Future MaKe the MoSt of Special SaviNgS plaNS aNd NeW RuleS ts’ easy to focus only on dayt- od- ay issues hw en your’ e in the military I and miss out on av lualb e eb net� s that can imrp oev your n� ancial situation oev r the lon g run . tu B sr e b m e m e c i v r e s e v a h ss e c c a ot la i c e p s sg n i v a s se i t i n u t r o p p o ta h t t ’ ne el b a lr ai a v a ot t s o m , e l p o e p os s ’ t i tn a t r o p m i ot e k a t eg a t n a v d a fo es e h t sm a r g o r p el i h w uo y . n a c M yna srebmemecivres kolre v o eht ecnatropmi fo v as - gni esuaceb yeht epoh ot e rite r mo rf eht yratilim retfa 02 srae y dna eviece r noisnep emocni rof . ,efil re v e w o H re wef naht %81 fo srebmemecivres yat s gnol hguone ot yfilauq rof yratilim tneme rite r . y ap ehT tse r teg . gnihton u ekiln nailivic , sboj e reht si on laitrap gnit se v rednu eht tne ruc met sys fi uo y ev ael e rofeb 02 . srae y e nev fi uo y No MatteR What od dne pu gniteg eht ,noisnep ruo y tneme rite r emocni dluoc eb sa eltil sa %05 fo ruo y esab yap e rom( fi uo y RetiReMeNt SYSteM You yats regnol naht 02 ,)srae y gniv ael uo y ot l� ni eht spag . flesruo y a dn rojam segnahc e ra gnimoc nos ot chooSe, it’S eSSeNtial eht yratilim tneme rite r ,met sys hcihw liw ediv o rp wen to Save oN YouR oWN, too. seitinutropo rof srebmemecivres ohw t ’ nod yat s rof 02 . srae y tu B eht wen met sys dluoc osla ecude r ruo y efil - emit emocni dna e kam ti ne v e e rom tnatropmi ot ev as no ruo y .nw o esuaceB fo eseht , segnahc ynam ecivres - Begin with the Thrift Savings Plan srebmem liw den ot e kam ye k snoisiced tuoba rieht eh T s ’ t n e m n r e v o gt f i r h T sg n i v a S na l P si a tae r g ec a l p laicnan� se rutuf ni 8102 es( “What You Need to Know ot tra t s . g n i v a s M sreb m e fo eh t yr a t i l i m na c t s e v n i ni about the New Retirement System” no egap .)3 si h t de g a t n a v d a - x a tt n e m e r i t e r sg n i v a s na l p ro f r e d e f - la , s e e y o l p m e hc i h w si ra l i m i s ot a eta v i r p s ’ y n a p m o c n o re t t a m h c i h tw n e m e r i t em e r t s y s u o y , e s o o h c ’ t i ( 1 0)4 k na l p tu b ht i w yl e m e r t x e w o l . s e e f uo Y na c t s e v n i l a i t n e s s e o t e v a s n o r u o y , n w o . o o t e h T r e g n u o y u o y e r a pu ot 00 0 , 8 1 $ ni eh t PS T ni , 6 1 0 2 dn a ne v e e r o m fi e r ’ u o y n e h w u o y t r a t s g n i t t e s e d i s a y e n o m r o f r u o y , e r u t u f e h t gn i v i e c e r ee r f - x a t em o c n i el i h w gn i t s o o b — d e y o l p e d eh t r e i s a e t i l l i w e b o t d l i u b a y h t l a e h t s e n . g g e e l i h W u o y e r a ti m i l ot 00 0 , 3 5 $ si h t . r a e y n i , e h t y ru a o t i y l i m n a c e k a t e g a t n a v d a f o l a i c e p s t s e v n i - g n i s m a r g o r p d n a x a t s k a e r b o t p l e h u o ey g r a h c r e p u s ehT PST sediv o rp elbaula v xat , segatna vda on retam r un o e vy — e s g n i v a sf i u o y n a c y l n o d r o � a o t t e s e d i s a a woh hcum uo y nac d ro�a ot ,t se vni dna a wen elur se vig e l t t i l y e n. o m w o ni s ’ t p u o t u o y o t e k a m e h t t s o m f o uo y eht noitpo ot e kat eht xat skae rb won ro dliub pu - xat r u o y . s n o i t p o e rf emocni rof eht . e rutuf The Personal Finance Guide for Military Families | Financial Field Manual 1 fI you choose to maek traditional contriub tions , the money you set aside reduces your taax lb e income no w and rg osw ta-dx eferred until retirement . For eax mlp e , contriub tin g 0, 01 $ cuts your taek h- ome ap y yb uj st 05, 7 $ if your’ e in the %52 federal ta x rb acek t e( ev n less if your contriub tions also escaep state income ta .)x lA ternatiev ly , you no w haev the otp ion to maek oR th TPS contriub tions , hw ich dont’ rp oiv de a ta x rb ea k no w ub t do let you iw thdra w the money taf- x ree in retirement . This is similar to a oR th ARI ub t iw thout any income lim- its to lb oc k contriub tions . oN( te that contriub tions from taf- x ree ap y in a comab t oz ne iw ll neev r eb taex d). iW th either ev rsion of the TPS , your contriub tions can rg o w sing ic� antly oev r the years if you start early . aS y you contriub te 03$ each ap ychec k to a traditional TPS . oY ur taek h- ome ap y iw ll only shrin k yb 52 2 $ if you are in the %52 ta x rb acek t . nA d if you start at aeg 52 and con- triub te for the netx 03 years , you could end u p iw th more and sep cialiez s in helip n g military families iw th their than 0, 09$ yb the time your’ e !5 evE n if you leaev n� ances . T“ hey are eg nerally in the loew st rb acek t they the military at aeg 04 after 51 years of contriub tions and iw ll eev r eb in , eb cause of all of the nont- a x comep nsa- neev r add another dime to your TPS account , you could tion” . still end u p iw th aob ut 0, 07 $ yb aeg . 5 These eax m- e ka Ta e g atna vd fo lc-w o tso ignit s e v n lp es assume your inev stments return %8 ep r year , hw ich oY u haev seev ral loc- w ost inev stin g otp ions in the TPS . has eb en a tyip cal aev raeg for lont-g erm inev stments. oY u can choose from ev� inde x mutual funds inev stin g in sA mentioned aob ev , if you foreog the ta x rb ea k on your lareg comap nies , small r� ms , international r� ms , ob nds or contriub tions no w and instead contriub te to the oR th og ev rnment securities. ev rsion of the TPS , your iw thdraaw ls iw ll eb totally ta- x rO you can choose a lifecycle fund c( alled the L fund ,) free in retirement . fI your taax lb e income is loew r no w hw ich ub ilds a diev rsie� d op rtfolio of the other funds than it iw ll eb in the future , youl’ l come out ahead iw th to match your time horioz n . The fund inev sts rp imarily the oR th . in stoc k funds at the start , hw en you haev more than a F“ or most ep olp e relyin g rp imarily on military income , decade eb fore you lp an to ta p the money . nA d it rg adu- the oR th is eg nerally the aw y to og ” , says Patric k eB alg e , a ally eb comes more conserav tiev as your retirement date certie� d n� ancial lp anner in rpS ine�g ld , aV ,. hw o is also drasw near . hC oosin g the L fund is an easy aw y to inev st. a former helicotp er ip lot hw o retired from the Marines epxE nses for all of the funds are etx remely loa—w ob ut 92 cents a year for eev ry 0,1 $ inev stedm— aik n g the TPS one of the loew st-cost inev stin g otp ions aav ilalb e . For a coNtRibute to the 0, 01 $ op rtfolio , for eax mlp e , youd’ ap y uj st 92 $ a year Roth veRSioN of in inev stment manaeg ment fees . oY u can ek e p the money in the TPS after you leaev the the tSp, aNd YouR military , or you can roll it into an ARI or another emlp oy - WithdRaWalS Will be ers’ (104 ,)k hw ere it iw ll continue to rg o w ta-dx eferred . uJ st eb aaw re that if you taek the money from a tradi- tax-fRee iN RetiReMeNt. tional TPS and sep nd it , you could face an immediate ta x ib ll . hW ats’ more , youl’ l eg nerally face a %01 ep nalty if Continued on page 4 2 The Personal Finance Guide for Military Families | Financial Field Manual What You Need to Know About the New Retirement System ou may need to make is based on 2.5% times the number of As with any TSP contributions, the a major decision years you served times your retired base money grows tax-deferred for the future Y pay (generally calculated by averaging (or tax-free in a Roth TSP). In addition, about your fnancial the highest 36 months of basic pay). you generally can’t withdraw money from future in 2018 because the This works out to be 50% of your retired the TSP while you are still in the service, military is introducing a new base pay if you stay for 20 years, and and will need to pay a 10% penalty for retirement system. more if you stay longer. The payouts are withdrawals before age 59½. adjusted each year for the cost of living. For more information about the While the new system reduces the The new system changes the formula new system, see the Department of guaranteed income available after 20 to fgure retirement income as 2% Defense’s Blended Retirement System years, it provides matching contri- times the number of years served times Web page (militarypay.defense.gov/ butions to your Thrift Savings Plan, your retired base pay. This works out to BlendedRetirement). You’ll fnd which you can keep after just two years 40% of your base pay at 20 years. (Note information and FAQs (including of service. Your options depend on the that both systems adjust payouts for special calculations for members of the year you entered the military. the cost of living.) Reserves) and other resources. BEFoRE 2006. If you joined the But under the new system, you’ll also You’ll have from January 1, 2018, to military before January 1, 2006, you’re get something if you leave before then. December 31, 2018, to opt in. If you don’t covered under the original system. The Department of Defense will auto- do anything, you’ll remain in the current You need to stay for at least 20 years to matically contribute 1% of your basic retirement system. qualify for the military pension, which pay to the Thrift Savings Plan after 60 can be worth 50% (more if you stay days of service. It will also match your how do you choose? longer) of your basic pay. See the sec- contributions up to the next 4% of your If you don’t plan to stay for 20 years, tion below for more information about pay. That’s up to 5% each year in free then you’ll come out ahead with the how retirement pay is calculated. money that you can keep in your plan blended retirement system. If you’re not F frRomoM Ja 2n0u0ar6y T1,o 2 020061,7 t.o I fD yeocue mjobineerd (palleotningg w twitho ytheea resa orfn sinegrvs)ic aef.t er com- spmuaoryens twthohl yde otinh tcehore mo mre a nitsoh tl.i ykEoesultyi’l mtl oba ebte es wtuahnyadinte gry, o tihut er 31, 2017, then you’ll need to make a You may also receive a cash bonus after old and new pension system, and fgure big choice. You can stay with the old 12 years of service, in return for a com- out how much you’d need to save in the system, or you can sign up for the mitment of four more years of service, TSP to make up the diference. new “blended retirement system” that called “continuation pay.” reduces your pension but also provides “We’re doing some analysis to under- matching Thrift Savings Plan contri- stand the probability of retirement and butions. (The timing for members of if they can save enough to make up for the Reserves is based on the number of the gap,” says Josh Andrews, a certifed retirement points.) fnancial planner and advice director for Military Life for USAA, and former Air AFTER 2018. If you join on January Force pilot. 1, 2018, or later, you’ll automatically be enrolled in the blended retirement If you choose the blended system, be system. sure to contribute at least the 5% needed to get the full match in your Thrift how is the system Savings Plan; otherwise, you’re giving changing? up free money. Under either system, it Under the current military retirement helps if you can aford to contribute even system, you’ll receive income for life if more—the more money you contribute you serve for 20 years or longer. Your when you’re young, the longer it has time retirement pay, which starts right away, to grow and the less you’ll need to set aside later to reach the same goals. you iw thdra w the money from the oY u can contriub te u p to 05, 5 $ to a triub tion o( r a fe w days later if the t51 h account eb fore aeg 95 ½ u( nless you oR th ARI in 6102 o( r 05, 6$ if your’ e falls on a ew eek nd .) For eax mlp e , rp A il leaev your oj b after aeg .)5 0 5 or older ) as lon g as your modie� d , , 7 1 7 1 0 2is the deadline for 61 0 2 contri- aduj sted rg oss income is less than ub tions . eS e tsp.gov for more information and 00 0 , 7 1f1 $ or sinlg e l� ers , or 00 0 , 4 8 1 $ a calculator to hel p you rp oej ct your Finally , if you haev a sop use hw o doesnt’ if married l� in g oj intly . T( he oop rtu- future account ab lance and see the earn income , you can contriub te to an nity to maek contriub tions rg adually op ew r of lont-g erm comop undin g of ARI on his or her eb half . nA d children hp ases out as income rises aob ev earninsg . hw o earn income from a oj b also can those leev ls). contriub te to a oR th ARI , hw ich can eb an extra incentive to save: fI your’ e oY u can oep n a oR th ARI iw th a rb o - a rg eat aw y to eg t them started saiv n g haiv n g a touhg time up ttin g aside ek raeg r� m , mutual fund comap ny , for the future . money for retirement , consider that credit union or ab n .k hW en selectin g your contriub tions can also earn you Guaranteed return on savings an ARI administrator , loo k for lo w an etx ra ta x rb ea .k The eR tirement tI sounds almost too og od to eb true— fees and a raneg of inev stment choic - aS iv nsg oC ntriub tion rC edit is ow rth %0 1 interest ug aranteed . uB t in this es . fI you haev 02 or 03 years until %01 to %05 of the r� st 0, 2 $ you case its’ no scam : The militarys’ aS iv nsg retirement , its’ usually eb st to inev st contriub te for the year to the TPS , an eD op sit Prorg am lets seriv cememeb rs the money in a diev rsie� d op rtfolio ARI or another retirement saiv nsg inev st u p to 0 0 , 0 1 $ in the rp org am each of mutual funds . eS( e the nI ev stor lp an . The loew r your income , the time they are delp oyed .oY u receiev %0 1 Protection Trusts’ series of inev stor ed- hihg er your credit. annual interest , comop unded uq arterly , ucation ob olk ets at investorprotection.org and can ek e p the money in the account tI s’ ow rth 0,1 $ ep r ep rson at for more information aob ut creatin g hw ile your’ e delp oyed and u p to three the loew st income leev ls . uB t it a op rtfolio). months after you return . drosp to 02 $ if you are near the oN te that you can inev st the max - cuto 05, 03$— � for sinlg e l� ers ; For more information , see the PDS ap eg imum in ob th a oR th AR I and the 057 , 54 $ for l� in g head of household ; at the eD fense Finance and cA countin g Thrift aS iv nsg Plan in the same year . or 0,16$ if married l� in g oj intly . eW b site ( www.dfas.mil/militarymembers/ nA d you haev until rp A il 51 of the These limits are ab sed on aduj sted payentitlements/sdp.html.) é folloiw n g year to maek an AR I con- rg oss income , hw ich doesnt’ include your taf- x ree housin g alloaw nce or any taf- x ree ap y receiev d hw ile in a comab t oz ne . Tax-free earnings from a Roth IRA A oR th ARI can eb a rg eat aw y for anyone to sulp ement their retire - ment saiv nsg y— ou eg nerally dont’ eg t a ta x rb ea k for oR th contriub - tions , ub t you can iw thdra w your earninsg taf- x ree in retirement a( nd can iw thdra w contriub tions at any time iw thout taex s or ep nalties .) nA d delp oyed seriv cememeb rs eg t an ex - tra ep r :k fI your’ e receiiv n g taf- x ree ap y in a comab t oz ne , your money og es into the oR th taf- x ree , and your contriub tions as ew ll as your earn- insg come out taf- x ree in retirement . 4 The Personal Finance Guide for Military Families | Financial Field Manual Your Military Benefits diScoveR all the advaNtageS aNd pRotectioNS to Which You’Re eNtitled emeb rs of the military haev access to sep cial eb net� s M and leag l rp otections that can maek a hueg die� rence in your familys’ ep rsonal n� ances . eL arn ho w to maek the most of them . F ee r e g e lo c ro f uo y ro ruo y y lima f One of the most exciting benefts for servicemembers and their families is the expansion of the GI Bill. This can provide valuable benefts for you, your spouse and even your children. The Post 9/11 GI Bill covers the full cost of in-state tuition and fees at public colleges for up to 36 months (four academic years). Alternatively, it covers up to $21,970 for the 2016-17 school year for private colleges and foreign schools. You can also receive a housing stipend and mon- ey for books and tutoring. And you can use the money for undergraduate or graduate programs at college and universities, or for certain programs at vocational, trade and distance-learning schools. Eligibility is based on the length of time you serve in the military. Children aren’t subject to the 15-year limit, but military. For maximum benefts, you must serve at least they must use the transferred benefts by age 26. 36 months or serve on active duty for at least 30 continu- If you have more than one child or want your spouse to ous days and be discharged because of a service-connect- have the option to use the benefts, you can transfer 35 ed disability. You’ll earn partial benefts if you serve at months of benefts to your children and one month to least 90 days on active duty. your spouse. You can always adjust the allocation later And the Post 9/11 GI Bill ofers valuable fexibility: After on, but you can’t add new benefciaries after leaving the serving for several years, you may be able to transfer your military. benefts to your spouse or children. To make the transfer, For more information about transferring benefts, see you generally need to have served for at least six years the GI Bill transfer page at benefits.va.gov/gibill/post911_ on active duty or selected reserve and agree to serve four transfer.asp. more years. Spouses can use the transferred benefts right away; children must wait until you’ve served at least 10 If you (or your spouse or children) are attending a years. Servicemembers and veterans (and their spouses) private college, going to graduate school or paying out- must use the benefts within 15 years after leaving the of-state tuition at a public college, your benefts may The Personal Finance Guide for Military Families | Financial Field Manual 5 not coev r the entire ib ll . uB t you may uq alify for etx ra hel p from the LoW-CoST LIFE INSURANCE eY llo w iR ob n rp org am . uH ndreds Life insurance is always important if someone is depending on you of colleeg s rp oiv de scholarshisp for fnancially, and it’s particularly important if you’re heading to a combat a sep cie� d numeb r of students each zone. Active-duty members of the military have access to special low-cost year , and the eD ap rtment of eV terans term life insurance. Servicemembers’ Group Life Insurance (SGLI) costs a�A irs matches the schools’ contri- only 7 cents per $1,000 of coverage per month, or $336 per year for the ub tion . maximum $400,000. And it is available regardless of your age, health or To uq alify for the eY llo w iR ob n likelihood of being deployed. scholarshi , p you must eb eliig lb e for the maix mum G I iB ll eb net� s c( hil- Servicemembers can also get $100,000 in coverage for a spouse for as dren or sop uses usin g transferred little as $60 a year if the spouse is under age 35 (coverage costs more for eb net� s may also uq alify .)eY llo w rib - older husbands and wives). See benefts.va.gov/insurance for details. ob n fundin g av ries iw dely yb school What’s more, there’s now an extra beneft for SGLI benefciaries. The and rp org am , and you alp y for these HEART Act, enacted in 2008, permits surviving spouses who receive scholarshisp directly throuhg the colleeg . SGLI death benefts to invest some or all of that money into a Roth IRA, without being subject to the standard $5,500 limit. aH rav rd nU iev rsity , for eax mlp e , rp oiv des u p to 0 , 5 $ for an unlimit - If a spouse receives the maximum $400,000 death beneft, plus a ed numeb r of underrg aduate students $100,000 death gratuity, he or she can contribute up to $500,000 to a and u p to 0 , 8 1 $ for ub siness school Roth IRA, where it can grow tax-free for the future. Surviving spouses have students for the 71 6 - 1 0 2 school year . one year after receiving the death benefts to roll them into a Roth. lC emson nU iev rsity rp oiv des 005 , 3 $ “We wish younger surviving spouses knew that they could let the money scholarshisp for u p to 54 under - grow in a ROTH because they may not need the money right away,” says rg aduates , and u p to 0 , 5 $ for ev� rg aduate students . eS e thes ’ A V eY llo w Bonnie Humphrey, chief fduciary ofcer for AAFMAA Wealth Management iR ob n Prorg am ap eg ( b e n e f i t s . and Trust, which manages money for military families. av . g g o iv b/ i l l y/ e l l o w _ r i b b o n . a s p ) for more information aob ut each schools’ military sep cial leag l rihg ts and n� an- oe� rinsg . cial rp otections if they haev to moev YelloW RibboN For more information aob ut the Post uneepx ctedly or are delp oyed . tI eev n 1/1 9 G I iB ll and the earlier Montog m- alp ies if they must leaev a ciiv lian oj b ScholaRShipS ery G I iB ll , og to the eV terans a�A irs to og on actiev duty iw th the eR serev s G I iB ll ap eg ( g i b i avl l . . g o v .) eS e the vaRY WidelY bY or aN tional Guard. . S. UeD ap rtment of eV terans a�A irs nO e of the most av lualb e ARC S eb net� s School aNd up lb ication , F“ actors to oC nsider is the interestr- ate ca . p nI some situ- hW en hC oosin g a cS hool : A Guide pRogRaM . . . ations , the rate on a mortag eg , credit eB fore sU in g the G I iB ll ” at be n e f i t s . card , car loan or other detb can eb av . g g o iv b/ i l l , and the Federal Trade aNd You applY reduced to %6 if military seriv ce ae� cts oC mmissions’ hC“ oosin g a oV cational your aib lity to ap ya— s it may if you taek diRectlY cS hool ” at ftc . g o v . a ap y cut hw en actiav ted to the eR serev Interest-rate reductions or aN tional Guard . oN te that this rule thRough and other special rights alp ies only to detb s incurred rp ior to the college. The eS riv cememeb rs iC iv l eR lief military seriv ce or actiav tion , not to cA t ) AR C S ( ig ev s memeb rs of the detb s taek n on hw ile on actiev duty . 6 The Personal Finance Guide for Military Families | Financial Field Manual oY u usually need to send the lender a rw itten reuq est oY u also receiev taf- x ree ap y hw ile in a comab t oz ne and for the rate reduction and rp oev that your income has can contriub te more money to a Thrift aS iv nsg Plan hw ile eb en reduced .oY u may eb asek d to sumb it coip es of your delp oyedob— ostin g the limit from 0, 8 1 $ to 0 , 3 5 $ in military orders , earninsg statements and ta x returns . eB . 6 1 0 2 For more information aob ut federal ta x rules for aaw re that hel p is aav ilalb e from an rA med Forces eL ag l memeb rs of the military , see SRI Pulb ication , 3 rA med sA sistance c�O e ; og to le g a l a s s i s t a n c e . . l a aw . f m i l to n� d an Forces Ta x Guide at ir s . g o v . oc� e near you. oY u may also eb net� from sep cial rules for state income ARCS rp oiv sions can also hel p seriv cememeb rs terminate taex s . iC iv lians eg nerally haev to ap y state income taex s contracts . epS cic� ally , you haev the rihg t to terminate in the state hw ere they liev . uB t seriv cememeb rs and their an aap rtment lease if you haev orders for a ep rmanent sop uses are alloew d to maintain leag l residence c( alled d“ o - chaneg of station or are delp oyed to a ne w location for 09 micile )” in one state eev n if they are stationed in another . days or more .oY u can terminate a car lease iw thout an This can simlp ify your ta x situation and mayeb eev n saev earlyt- ermination fee if you are delp oyed for 081 days or you money . For eax mlp e , if you estalb ish residency hw ile loneg r . nA d you can terminate your cellhp- one contract stationed in Florida or Teax s , hw ich dont’ haev a state iw thout ep nalty if you receiev orders to relocate for more income ta ,x you can maintain that domicile hw ile your’ e than 09 days to an area that is not suop rted yb your on actiev duty , eev n if you moev to another state that does contract. haev an income ta.x eS e the . S. UeD ap rtment of uJ stices’ eS riv cememeb rs and oY ur domicile eb ig ns as your home state hw en you oj in the eV terans nI itiatiev s ap eg ( s e r v i c e m e m b e r s . g o v ) for more military and can remain the same , reag rdless of hw ere you information aob ut ARC S rp otections. are stationed . rO if you are transferred to another state and decide to maek it your home , you can estalb ish that state as Special tax breaks your leag l residence .oY ul’ l aw nt to reig ster to ov te in that Memeb rs of the military and their families eg t a lot of state , reig ster your car and eg t your driev rs’ license there , ta x rb eask that can hel p them stretch their ap ychecsk . and lp an to return once your seriv ce is comlp eted. fI you dont’ liev in ab se housin ,g your ap y iw ll include eK e p in mind that after you leaev the military , youl’ l haev a aB sic lA loaw nce for oH usin g )HA B ( that rp oiv des a to ap y taex s in the state hw ere you liev . Factor this in hw en taf- x ree housin g alloaw nce to hel p coev r your rent or calculatin g ho w much money youl’ l need to earn as a ciiv l- mortag eg . oL o k u p the amounts yb ran k and iz p code at ian to end u p iw th comap ralb e taek h- ome ap y . é defe n s e t var e l d. o d . m i l s / i t e / b a h c. f m . active-dutY SeRviceMeMbeRS caN MaiNtaiN legal ReSideNce iN oNe State eveN if theY aRe StatioNed iN aNotheR. The Personal Finance Guide for Military Families | Financial Field Manual 7 Before and After Deployment taKe SMaRt StepS to pRotect YouR faMilY aNd YouR fiNaNceS ou and your family already haev enouhg on your mind hw en you Y are rp eap rin g for delp oyment . Y ou don’t aw nt to ow rry aob ut n� ancial issues , too . Fortunately , you do haev access to some sep cial rp org ams hw ile delp oyed that can hel p your n� ances lon g after you return . ruo Y skcehc y ap wo rg nehw uo y eviece r e rf - xat emocni ni a tabmoc , enoz dna uo y nac e kat egatna vda fo laiceps sma rgo rp taht pleh uo y hcte rt s ruo y yenom ne v e ruf - . reht i s ’t osla tnatropmi ot tceto rp flesruo y mo rf ytitnedi se v eiht elihw e r ’uo y enog dna eb ydae r rof detcepx enu . slib ehT e rom uo y , e rape rp eht reteb l’uo y eb elba ot tceto rp ruo y ylimaf dna ruo y . secnan� nae S M leahci ,nosrae P a de�itrec laicnan� renalp htiw a esirpirem ni c ,ne kcohohsno ,.a P sah neb ni eht -ne P aina vlys a ri n lanoita d rau G rof 91 . srae y e H sdnemoce r gniod a cidoirep laicnan� “ ” , esic re x e ralimis ot a yratilim , esic re x e ot e kam e rus uo y dna ruo y ylimaf e ra de rape rp ylaicnan� rof .tnemy olped tahT ya w uo y t ’ nod ev ah ot elbma rcs fi uo y teg a etunim- t sal lac ot sa— y olped eh did nehw eh tne w ot i qa r ni . 302 e re H e ra emos spet s uo y nac e kat le w ni ecna vda fo ,tnemy olped dna a wef yletaidemi :e rofeb yenrota rof c�iceps , snoitcasna rt hcus sa gniyub a esuoh ro rac elihw e r ’uo y .de y olped a - yenrota- fo re w op cod - 1 organize legal documents tnemu yla reneg sah a emit ,timil os e kam e rus sruo y si ehT lagel ecnat sisa ec�o ta ruo y esab nac pleh uo y lit s pu ot etad fi e r ’uo y tuoba ot eb de y olped .niaga etae rc a ,liw sa le w sa a re w op fo yenrota dna -htlaeh a , osl kcehc ruo y yraic�eneb snoitangised no ruo y efil -ni e rac , yx o rp hcihw tel enoemos eldnah ruo y secnan� dna , ecna rus iaR ,s tfirhT sgniv a S nalP dna rehto tneme rite r e rachtlaeh snoisiced fi uo y e ra elbanu ot od os . flesruo y sgniv as esuaceb eseht snoitce rid edesrepus yna -amrofni ehT re w op fo yenrota nac eb ylralucitrap tnatropmi noit ni ruo y .liw i f uo y detangised a yraic�eneb nehw elihw e r ’uo y .de y olped uo Y nac tna rg a la reneg re w op fo uo y tsr� denioj eht ecivres dna t ’ ne v ah degnahc ti ecnis , yenrota hcihw se vig ruo y evitatnese rpe r dao rb sre w op uo y tog ,deiram rof , elpma x e ruo y lanigiro yraic�eneb re v o laicnan� . snoitcasna rt rO uo y nac esu a re w op fo dluoc tirehni ruo y .tnuoca 8 The Personal Finance Guide for Military Families | Financial Field Manual

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