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Question on Military TSP and percent contribution

A

astroview

Golden Member
My understanding is you can contribute up to 7% of your salary to the TSP.

So an O-2 who makes $32,392.80 per year (2699.40 per month) can contribute $2267.50 per year to the TSP.

The max that one can contribute is 14,000 per year to the TSP, so aren't you being screwed by not being able to contribute the full 14,000, or something higher than $2,267.50. Capping it at $2,267.50 seems pretty low.

Or is my math wrong?
 
You can now contribute 9% of your base pay and 100% of special or incentive pay (flight pay, hostile fire, etc.). But your basic point still stands, the lower your basic pay, the less you can save. Work hard, do your PME and get promoted.

TSP FAQs

 
Whats PME? And how do I get incentives if I'm just on base? I'm looking into joining the Navy through the Direct Appointment Program as an O-2.
 
I'm not in the military but I do work for the govt. I can put up to 14% into my TSP. They'll only match 5% however.
 
Originally posted by: astroview
Whats PME? And how do I get incentives if I'm just on base? I'm looking into joining the Navy through the Direct Appointment Program as an O-2.
Click to expand...

PME=Professional Military Education. They are the military schools you attend, or take through correspondence, that help you get promoted.

Special pay depends on your career field and where you are stationed. If you fly, you get flight pay as an incentive. Others get similar incentives if their specialties are in demand. Just living on base does not get you incentives as far as I know.
 
Originally posted by: murban135
You can now contribute 9% of your base pay and 100% of special or incentive/allowances pay (flight pay, hostile fire, etc.). But your basic point still stands, the lower your basic pay, the less you can save. Work hard, do your PME and get promoted.

TSP FAQs
Click to expand...

 
Thanks for the info. It sucks I can't save the max 14,000 as an O-2. My current job offers the full 14,000. It really makes no sense to me since the money comes from me, not from them.

I'll look into the PME, but I doubt I'll be able to take any. I also don't want to be a lifer, though that is a consideration. In the long run I stand to make more money if I leave the military, but in the short run it looks like a very good option to me since I have no other job opportunities.
 
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