Set Up Your 5% Roth TSP: 5 Minute Military Money 1/10 #219

Military Money Manual may receive compensation from JPMC. Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain. What if you could set yourself up for financial success in the military with just ONE action that takes 5 minutes? Spencer and Jamie kick off their 10-part "If You Don't Have Time for Anything Else" series with the absolute first thing every military service member needs to do: Start a 5% contribution to your Roth TSP. This bite-sized episode cuts through the confusion and gives you the exact steps to take right now. What to Do Action: Set up 5% Roth TSP contribution Steps: Go to mypay.dfas.mil Click TSP tab Select 5% to Roth TSP Done Time required: 5 minutes Key Information What is TSP? Thrift Savings Plan = military's 401(k) Automatic retirement account from Department of Defense Two types: Roth and Traditional Why 5%? Months 1-24: DoD contributes 1% automatic Month 25+: DoD contributes 5% automatic + matches your 5% (total: 9%) You must contribute 5% to get full match Why Roth? After-tax contributions Tax-free growth Tax-free withdrawals at retirement (age 59½+) Best choice for most military members Auto-Enrollment New members: Often auto-enrolled at 5% Existing members: May be re-enrolled at 5% in January Check MyPay to verify Resources MyPay: mypay.dfas.mil TSP Course: militarymoneymanual.com/tsp Related Episode: Episode 2 of MMM - The Thrift Savings Plan (most popular episode) Book: The Military Money Manual Bottom Line: 5% Roth TSP = free DoD matching money. Takes 5 minutes to set up. Do it now. Spencer and Jamie offer one-on-one Military Money Mentor sessions. Get your personal military money and personal finance questions answered in a confidential coaching call. militarymoneymanual.com/mentor Over 22,000 military servicemembers and military spouses have graduated from the 100% free, Ultimate Military Credit Cards Course available at militarymoneymanual.com/umc3 In the Ultimate Military Credit Cards Course, you can learn how to apply for the most premium credit cards and get special military protections, such as waived annual fees, on elite cards like The Platinum Card® from American Express and the Chase Sapphire Reserve® Card. https://militarymoneymanual.com/amex-platinum-military/ https://militarymoneymanual.com/chase-sapphire-reserve-military/ Learn how active duty military, military spouses, and Guard and Reserves on 30+ day active orders can get your annual fees waived on premium credit cards in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3 If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com. If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual.