401K/other benefits

[airgreg]

For anybody who worked in the private sector before heading off to OCS:

What happens with your 401K? Did you cash-out or transfer it to a military retirement fund somehow?

Any thoughts on using other employment benefits (dental/health/etc...) or is everything cheaper once you're in the military?

Thanks for your help!
-Greg

 

[Ghish]

If you cash-out your 401k you will be taxed a big chunk. Your best bet will probably roll it over to an IRA, which is tax free.

 

[Frumby]

My admin clerk handed me a form the other day to fill out. It was regarding the new military personnel 401K? Has any active duty experienced or seen this one. 16 years to late for me but I started it anyway. Frumby

Attack Pilot
Major USMC

 

[Vic]

Be careful, if you're married.

You actually need your wife's permission to withdraw from or cash-in your thrift savings plan.

I went to a class at DFAS and even they told me it was better to just invest, for now that is. It could change in the future to something like the 401(k) but right now it's not worth it.

 

[Jeff29]

TSP is actually authorized to use matching funds for those in critical fields. However, they have yet to designate any field as such. It could be used in the future as a retention bonus.

 

[Frumby]

Hey Vic,
Good advice but I need my wifes permission to take a dump let alone withdraw money. She's an investment banker.....I get an allowance. Marriage is bliss. Frumby

Attack Pilot
Major USMC

 

[williamw]

Damn Frumby - Thanks for that laugh. I'm not married but based on the amount of power my girlfriend wields i feel your pain
Walt

 

[Vic]

Hey Frumby,
No worries, my wife is an accountant, I feel your pain! As far as taking a dump, I need permission to get up. I have to make sure the toilet is clean and the lid is down! Marriage has it's simple perks, don't you think?