Combat pay is federal tax-free — contribute up to $70K to TSP as tax-free traditional, withdraws tax-free as Roth conversion.
IRC §112 excludes military pay earned in a designated combat zone from federal income tax (enlisted 100%; officers capped). Combat zone earnings still count as compensation for IRA and TSP contributions. Loophole: contribute tax-free combat pay to TRADITIONAL TSP (annual addition limit up to $70K 2025 including employer/agency and combat contributions) — dollars go in tax-free AND grow tax-deferred. Later Roth-convert the traditional TSP for tax-free withdrawals — effectively 'super-Roth' larger than any civilian can achieve.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Servicemembers Civil Relief Act caps ALL pre-service debt (mortgage, credit card, student loan, auto) at 6% during active duty.
Vets keep second-tier entitlement to buy another home with 0% down before selling the first — house-hack indefinitely.
The TSP G Fund pays intermediate-Treasury rates with the price stability of a money market — no civilian equivalent.
100% P&T disability triggers state property tax exemptions, federal income tax exclusions, and dependent education benefits.
Servicemembers with 6+ years service can transfer up to 36 months of Post-9/11 GI Bill benefits to spouse/kids.
Deployed servicemembers can deposit up to $10,000 in SDP and earn a guaranteed 10% APR — the best fixed rate in America.
Servicemembers and spouses keep home-of-record state tax residency regardless of duty station — pick a no-income-tax state.
Combat-Related Special Compensation restores tax-free VA disability payments offset from military retired pay.