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Joining the military has its advantages, especially when it comes time for retirement. Those in the military enjoy a number of benefits that civilians are simply not entitled to. Going into military retirement, then, it is helpful to know how to plan, what to expect and how to take advantage of your veteran status.
When you are enlisted in the military, you are entitled to many special benefits both during and after service. One of these benefits includes potential access to military medical retirement pay, depending on your circumstances. According to the military's website (Military.com), most types of military retirement pay, including military medical retirement pay, can generally be calculated on your length of service in the military and when you first enlisted.
If you have served in the military, the United States government rewards your sacrifice with retirement benefits. If you became disabled while serving in the military, the Department of Veterans Affairs provides VA disability compensation or disability pension depending on the your age. You may be eligible to receive these benefits at the same time. This practice was forbidden until 2004, but it is allowed now, provided that you meet the eligibility requirements. Concurrent benefits are highly personalized based on your specific situation, so there are no tables or generic ways to determine your benefits. However, there is a process…
The Survivor Benefits Plan is an insurance plan that allows retired military wives to receive their deceased husband’s pay. At retirement, the husband's automatic enrollment in the Survivor Benefits Plan continues, but he must make monthly premium payments to the plan for continued coverage.
When deciding on a retirement home, career members of the military often take into account the way a particular state taxes retired military pensions. Oklahoma offers a state tax break for retired members of the United States Armed Forces receiving disability pay, which is untaxed. Regular retired military payments receive an exclusion from state tax.
There are many scholarships available to the children of retired military parents, and the majority of them are available to students pursuing an undergraduate degree -- in fact, the majority of them are limited to undergraduate students. Some programs are national in scope, while others are local. Other programs are limited to students whose parents are veterans of certain military branches.
Veterans with disabilities qualify for a number of benefits from the government. The veteran has options as to which type of benefits he wishes to collect. Ex-spouses of disabled veterans and any minor children of the veteran may also be entitled to a portion of those benefits should the veteran get a divorce.
The federal government looks after the welfare of retirees and their surviving spouses. In fact, the Social Security Administration has published policies and guidelines that surviving spouses can easily understand. At the local level, most state governments like Illinois have well-defined procedures that aim to educate state employees and their families on benefits and how qualified recipients can claim these benefits.
Children of deceased veterans are entitled to benefits under the provisions of the old Montgomery GI Bill. However, the U.S. Department of Veterans Affairs has launched a newer version of this bill; the VA explains that this bill applied only to the children of those enlisted for active duty in the United States Armed Forces.
Being the widow of a veteran is challenging enough without having to consider whether or not you will receive benefits from your husband's term of service and what those benefits may be. The U.S. Department of Veterans Affairs has a survivors' benefits program that offers certain benefits to surviving widows to help as they recover from such a devastating loss.
When a person has an outstanding claim on an insurance policy at the time of his death, the claim will generally still be processed. Similarly, if a person has an insurance policy at the time of his death, then the policy will either terminate or remain in effect, depending on the stipulations of the contract. Whether an ex-spouse can contest this policy will depend on a number of factors.
When a military reservist with at least 20 years of service reaches the age of 60, he can begin collecting retirement pay for his years served in the armed forces. According to "Military Benefits," retirement pay for military reservists is based on a point system, in which a point is equal to a full, eight-hour day of active service. Reservists also earn 15 points a year for membership in the Reserve Component, one point for each unit training assembly or each day in funeral honor-duty status. The date in which you enlist in the armed forces determines which retirement system…
Supplemental Security Income and Social Security Disability benefits are payable to you if you're disabled and can't work. This may also effectively force you into disability retirement. This type of retirement is significantly different from collecting normal Social Security benefits. Work that you do when disabled may limit the benefits you receive from Social Security.
As Social Security benefits operate within federally funded and federally administered programs, the process for filing for Social Security disability benefits in Louisiana works in much the same way as in any other state. Unemployment benefits also follow certain federal guidelines, though individual states administer their own programs. Since disability indicates an inability to perform work, only special circumstances allow for a person to file for disability and unemployment benefits at the same time.
An activities assistant in a retirement home organizes and promotes activities intended to enhance the lives of residents. Activities might include games, social events, arts and crafts, hobbies and entertainment. The average salary for all recreation workers as of May 2010 was $12.15 per hour, according to the U.S. Bureau of Labor Statistics. A look at specific types of employment gives an indication of salaries for retirement home activity assistants and others who work with elderly people.
When you inherit a retirement plan from your spouse, one of the issues you contend with is how those assets are distributed. Distribution of assets from a retirement account favors spouses at the federal level when compared to inheritances given to non-spouses. Understand your rights and what changes you can make to retirement plans after your spouse's death.
As a general rule, the beneficiary you name when you buy life insurance is the only person with rights to the money paid off under the policy. If an ex-spouse is not the beneficiary, she has no right to contest payment to the person named under the contract. However, some situations may change these rights and give an ex-spouse rights to money you named for somebody else.
If you are divorced and you and your ex-spouse are both disabled, both of you may qualify to receive various public benefits. If you are already receiving disability benefits, you may also qualify to receive other Social Security benefits based on your personal work, your ex-spouse's work or both of your work records. The main requirement for eligibility for each Social Security benefit is that either you or your ex-spouse must have paid Social Security tax.
Your postal annuity is either part of the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS). Both retirement plans are open to government employees and provide you with a base level of income in addition to which you may earn income from supplemental sources like Social Security and your Thrift Savings Plan (TSP).
Thousands of U.S. Armed Forces draftees and volunteers have served to protect the United States of America. In return for the sacrifices they have made, the U.S. is committed to taking care of the surviving family members of its deceased active duty service members and qualified veterans. The Dependency and Indemnity Compensation (DIC) program is a part of that commitment and includes the allocation of benefits to the surviving spouse of a qualified veteran.
Although working in the military carries with it some inherent danger, the benefits packages military personnel receive are significant. The disability benefits you can receive from the Department of Veterans Affairs (VA) can help you fill a financial void if you are unable to work because of a disability. Your retirement benefits also allow you to start drawing a regular income after your military duties are completed.
Dividing tangible assets in a divorce is never easy, and many divorcees can attest to the struggles to develop an equitable divorce settlement when divvying up personal property. When intangible assets -- such as retirement benefits -- become part of the process, developing a plan to distribute the future value of those assets becomes even more difficult. Because assets earned during a marriage are considered communal property in a divorce, ex-spouses are frequently granted portions of retirement benefits.
The U.S. Department of Veterans Affairs (VA) offers a guaranty service for home loans. An active military member or veteran who has been honorably discharged may be eligible for benefits including low interest rates, low down payments and no private mortgage insurance requirement. You are eligible for these benefits if you are a surviving spouse of a person who died on active duty or as a result of service-related disabilities.
The U.S. Military does not provide direct benefits for you as a spouse if your husband is disabled as a result of his military service -- even if he's 70 percent disabled. You do benefit indirectly from your husband's disability payments in the form of increased monthly benefits because of your marriage. This allows you more financial flexibility in paying the bills while your husband attempts to recover.
As of May 2011, the federal government is the largest employer in the nation. Federal employees work in many positions in federal government agencies, including Homeland Security, Veterans Affairs, the Justice Department and the Energy Department. Most federal civil workers are in the Washington, D.C., metropolitan area. The federal government offers benefits to civilian employees.
Children in a Navy family are eligible for several benefits. Extensive recreation options, medical and dental care, and on-base primary and high school round out the major benefits dependent children have. However, children with a parent in the Navy must also deal with deployments, unorthodox schedules and frequent moves.
Working as a server to the public can be a difficult job, but it can be financially rewarding if you provide good service for which people provide tips. The government wants to share in your good fortune. If you receive tips, or gratuities, as part of your employment, you must report this tip income to your employer, as well as to the Internal Revenue Service when you file you income taxes.
The U.S. Department of Veterans Affairs (VA) administers benefit programs for surviving family members of those serving in every branch of the military. As with other government programs, surviving dependents are required to apply for benefits directly with the VA through one of its regional offices. Benefits are payable only when eligibility is verified and according to the conditions of each specific program.
Retiring after 20 plus years of serving your country in the military brings about feelings of excitement and probably some nervousness as well. In most cases, your life after the service will change quite a bit. Completing your road map beforehand helps you put any possible anxiety at bay once you are discharged. The best areas to retire, according to U.S. News & World Report, are places that have employment options, United States Department of Veteran Affairs health care, healthy economies, low cost of living and top notch educational opportunities.
The Department of Veteran Affairs is the federal agency with authority to grant benefits to deceased veterans and their dependents. According to the VA, benefits apply to all service members who lost their lives while on active duty or on active duty for training, and those who suffer from disabilities connected to active military service. Dependents of deceased veterans and claimants for VA benefits have the right to apply for benefits and appeal decisions made by VA regarding status of eligibility. However, individuals found to have committed federal or state capital crimes are barred from receiving certain VA benefits.
The death of a wife or husband can be a traumatic event. For the spouses of deceased military personnel, the federal government provides a wide range of benefits and financial assistance. Spousal retirement and indemnity death benefits help pay for costs related to burial expenses, childcare and basic living expenses.
Just because somebody works for the government doesn't mean she doesn't pay taxes. This includes people serving in the armed forces. Most of the wages received by soldiers, Marines, sailors and airmen are taxable just like any other income. Some of the compensation they receive however, is not taxable. Many service members receive income to replace material benefits received by nonmarried service members. Service members also receive a tax exemption on all wages earned in some cases.
As a worker, you are subject to a number of different taxes, from Federal and state income taxes to the payroll taxes used to fund Social Security and Medicare. But your tax liability does not go away when you retire, and you need to consider taxes carefully as you develop your post-work budget.
A spouse must meet the state's requirements in order to file for divorce. Missouri Statute Title 30, Chapter 452, Section 300, requires that the filing spouse -- called the petitioner -- must be a state resident for 90 days prior to filing. She can file a Petition for Dissolution of Marriage with the circuit court in her county of residence. During the divorce proceeding, the court will address outstanding issues of the marriage, including spousal support and child support.
The United States has a long tradition of honoring its veterans, including those who have returned home from their terms of service to live lives once again as civilians. Among the benefits the U.S. Department of Veterans Affairs provides are burial and memorial services.
Military retirement is taxed by the federal government like any other income earned during a tax year. Many states however, offer full exemptions of military retirement pay for state income tax purposes. Other states might offer partial exemptions of this type of income.
Family members of deceased veterans are eligible to receive some benefits from the Department of Veterans Affairs. Eligible family members include spouses, children and any dependents the veteran had while he was alive. Children are generally eligible to receive veteran benefits based on their age and also based on the deceased veteran's years of service.
In 1982, Congress approved the Uniformed Services Former Spouses' Protection Act, also known as USFSPA, giving states the authority to divide military retirement compensation between spouses. The USFSPA benefits the service member by ensuring the requirements of the Servicemembers Civil Relief Act, commonly called SCRA, are met before the division of retirement pay. Former spouses are provided with a means of enforcing a spousal or child support order for payment.
The Department of Defense requires sound financial management of all military members. Service members are expected to pay their debts on time without interruption. When this does not happen, service member pay is subjected to garnishment for commercial debt, child support, alimony and bankruptcy. The creditor has a right to obtain compensation for an unpaid debt by seeking a judgment against the service member and requesting an involuntary allotment, commonly referred to as a garnishment.
Nine states do not have state income taxes. These are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, according to the IRS, as of February 2010. Tennessee and New Hampshire do tax some dividend and interest income.
As of 2011, more than 25 million veterans of the U.S. Armed Forces qualify for benefits through the Department of Veterans Affairs (VA). To qualify for VA benefits, veterans must have received a discharge other than dishonorable. Benefits available range from free or reduced cost health-care, college assistance, job training, employment preferences, mortgage assistance and disability payments for service-connected disabilities.
There exists no real average retirement salary which is useful for all retirees. The needs of each individual depends on the lifestyle he wishes to enjoy and his daily living expenses during this period. Pre-retirement income and investment contributions determine how much he receives. The individual compensates for limited Social Security payments, based upon prior work earnings, by establishing investment accounts to grow contributions and withdraw from later. The combination of the two gives him a retirement salary.
In the Army, you have to meet several criteria if you want to be promoted. The first is a minimum amount of time in service, then a minimum amount of time in the grade (or rank) you hold now. Once you've met the minimum time requirements, you get selected to go before a promotion board. Then your promotion points are added up and if you meet the minimum amount of points that were set forth that month for your military occupational specialty (MOS), you are promoted. To calculate your promotion points, you need to look at all your achievements.
The Railroad Retirement Board (RRB) is an independent federal agency that oversees the retirement and unemployment benefits programs for railroad workers and their families. Railroad retirement payments are subject to federal income taxes, which the RRB will withhold at the request of a recipient. However, railroad retirement and unemployment benefits are exempt from state income taxes, which benefits retirees who reside in states that levy an income tax.
Spouses can create a living trust to benefit children and relatives as well as protect assets for future generations. Once funded with assets, a living trust is a legally recognized tax-paying entity. It receives protection from creditors and cannot be revoked by a beneficiary or third party.
Deceased veterans and service members who serve on active duty or the selected Reserve qualify for death benefits. Military benefits depend on whether the service member completed a full enlistment term or separated from military service with any type of discharge except a dishonorable discharge. Benefits include providing deceased members of the military with funeral honors, burial expense reimbursement and cemetery services.
Individuals serving in the United States military receive monetary payment in exchange for performing their duties. Additionally, people who have retired from military service also receive veterans' pension payments from the federal government. In some cases, federal law allows entities to "garnish," or withhold, a certain portion of a current or retired service member's income to pay her debts.
The Uniformed Services Former Spouse Protection Act (USFSPA) addresses the concerns of divorced spouses in relation to veterans benefits. Divorce terminates most veteran benefits, but former spouses are entitled to a few benefits if they meet specific criteria. Divorced spouses of service members should contact a military legal assistance office for further clarification.
Tax credits require existing tax liability for a taxpayer after subtracting deductions from gross income. The total of all wages and compensation equals a taxpayer's gross income. Subtracting all deductions from this amount gives the tax liability of the taxpayer. If it is positive, the taxpayer uses tax credits to further reduce that amount to zero, if possible, or perhaps create a refund.
Retirement age in the military is a major drawing point for many would-be enlistees and officers. When you reach the years of service threshold for your branch of military service, retirement is an option no matter what your age. In addition, the option to retire carries with it a salary for retirement that you receive for the remainder of your life.
If spouses decide to end their marriage amicably, they may be able to file for an uncontested divorce. In Alabama, an uncontested divorce is available if spouses agree on all outstanding issues in their marriage. Once all the required paperwork is signed, it can be submitted to a judge, who will issue the final divorce decree.
Like civilian divorces, military divorces are generally governed by the laws of the state in which it is filed. There are, however, additional federal laws that apply to a military divorce that can affect the division of the related marital property. For example, a long-term spouse of a servicemember becomes entitled to retirement pay and medical benefits for life.
The U.S. Navy, like all branches of the Armed Forces, provides substantial benefits not only to its uniformed members, but also to family members. The Navy does not restrict benefits to spouses and children who are a product of that marriage, however. Sailors may register dependents who are born out-of-wedlock as well.
The system for compensation of former service members was originally very simple. There was no retirement benefit for individuals separating with less than 20 years service. At 20 years service, the retiree would receive one-half of his monthly base pay. Individuals serving beyond 20 years would get an additional 2.5 percent of base pay for every full year beyond 20. Changes have been made, however, that complicate the issue somewhat.
Alabama divorce law considers pension benefits marital property if certain criteria are met, meaning that either spouse may or may not be entitled to a portion of the other spouse's pension. Because the division of property during a divorce in Alabama is complex and based on individual circumstances, it's advisable to seek legal counsel to help you navigate and understand the particular nuances of your marital assets and the legal equitable division of those assets.
One of the most emotionally charged issues in property division pursuant to a divorce is the disposition of a party's pension plan. After twenty or thirty years of working for the same employer, having to share a pension with an ex-spouse can be difficult. Understanding how family law courts treat pensions can make the process of property division pursuant to divorce easier to handle.
The U.S. Navy can't just recruit and retain sailors; it must also recruit and retain Navy families as well. Both sailors and families frequently endure the hardships of long separations, isolated duty assignments, and frequent relocations. To that end, the U.S. Navy works hard to offer competitive and generous benefits to make it worthwhile for families to "Stay Navy."
Although military pay at one time lagged behind civilian pay scales for similar skills and experience, the pay rates in the armed forces have gradually improved. Nevertheless, members of the military are subject to federal income taxes, just as civilians are, and in some states also subject to state-level income taxes.
State laws and legal precedents are confusing or nonexistent with regard to ex-spouses receiving alimony after entering into a domestic partnership. It is entirely possible for an ex-spouse in a domestic partnership to continue receiving alimony, but a multiplicity of factors can complicate the situation, including which state the partners live in and the legalese in the divorce settlement. Discuss your particular situation with an experienced lawyer.
If you happen to be a veteran of the military, you can acquire an insurance called the Survivor Benefit Plan that enables your surviving spouse to acquire your retirement benefits after you die. However, unless you make it clear in the insurance you want to give your military benefits only to a spouse or to specific children, your survivor benefits will automatically go to your spouse and children after your death.
When you owe money to someone else, the creditor can take many assets away from you to satisfy the debt. However, many, but not all, types of retirement accounts are protected from seizure. You should know which of your assets are protected and which ones are not, as this may dramatically affect your future retirement plans.
Navy widows are entitled to a variety of benefits. These benefits are intended to offset some of the financial hardship a spouse endures while following her husband from post to post as well as the loss of the spouse. Widows with young children are entitled to additional benefits covering the children.
Congress has provided a number of tax benefits as a thank-you to members of the armed forces of the United States and provides for a number of special deductions in recognition of the frequent travel and relocation that military life demands. Tax benefits include excluding most income earned while within a combat zone and special arrangements for military homeowners.
The Civil Service Retirement System (CSRS) is a pension plan available to federal civil service employees. The CSRS plan replaces the Federal Employee Retirement System (FERS), and the benefits you receive from the plan are similar to those you would receive under the Social Security plan. Annuity and pension benefits you receive from the CSRS are subject to income tax and income tax withholding. You can elect not to have federal income tax withheld from your payments, but you must report your civil service retirement income on your annual tax return.
If you provide services for the United States Air Force (USAF) for more than 20 years, you are eligible for military pension benefits. There are several online calculators available to help you calculate your pension amount. Your retirement plan system will depend on the date you began serving the USAF and whether you chose a Career Status Bonus when you enlisted.
The U.S. government offers educational benefits not only for enlisted personnel, but also for their spouses, whether pursuing a college degree, professional licensing or other credentials. Different branches of the military offer different benefits, as do different government agencies. Additionally, some states offer education benefits to service members as well. Thus, to get the most available benefits, you'll have to research to see what's available to you.
Professionals looking to get a leg up in the business world often earn Master's in Business Administration (MBA) degrees while they build their careers. These programs expose them to a range of business functions and challenge their analytical skills as they progress through coursework. Fortunately, the challenge of working and earning an MBA pays off. MBA graduates experience several benefits after earning their graduate degree.
Military retirement differs from traditional civilian retirement because of the way funds are earned and distributed. Technically, military retirement is paid under the agreement that the retired service member may be called into action at any point in time; therefore, the retiree is paid a fraction of his active duty base pay for the remainder of his life. Oftentimes, service members are young enough to begin a second career after retiring from the military and may earn dual retirement income.
Unlike regular pensions, retirement for military service members is based on a points system earned over the course of service. With a pension, the retiree has a chunk of money sitting in an account. With military retirement, the government pays the retiree a percentage of his base pay for the rest of his life, however long that may be. As a former spouse, your share of the retirement is based on the length of time you were married during the military member's service.
When a service member involuntarily leaves the military with an honorable discharge, he may be eligible for military severance pay. This one-time payout was instituted to better enable military personnel to transition to civilian life after a lengthy period of service. It takes into consideration the military member's length of service, rank and several other variables, such as disability. Military members may be eligible for severance pay with as little as six full years of military service.
In 2009, two of the largest companies in the United States---General Electric and Bank of America---paid no taxes, but still received money back due to tax credits. Individual taxpayers can receive money back from the government through tax credits too. Whether it makes sense to bother claiming a credit when you have zero tax liability depends on the type of claim.
The Department of Defense and the Department of Veterans Affairs provide widows of Army service members and veterans with certain benefits. The Department of Defense provides a Casualty Assistance Officer to help widows of active duty Army personnel who pass away as a result of military service. Army widows of veterans deal directly with the VA to file benefit claims.
The Uniformed Services Former Spouses Protection Act gives individual states the power to classify and divide military retirement in divorce cases. Although retirees give much attention to questions of whether their former spouse is entitled to a portion of their pension in community property or equitable distribution proceedings, military retirement can also become involved in child and spousal support cases.
With the passage of the Uniformed Services Former Spouses Protection Act in 1982, individual states gained the freedom to classify military retirement as marital property and divide it in the context of divorce, overturning a previous holding of the United States Supreme Court. Military retirement now plays an important role in the divorce cases in which it becomes an issue.
When you receive your retirement, you may have to pay taxes. Whether you do or not depends entirely on the type of retirement account you have. Paying taxes dramatically changes certain retirement assumptions, like how much you need to save and how much money you'll get during retirement. For this reason, it's important to know whether you're going to be taxed on the money you receive during retirement.
The military retirement system is different from most civilian plans. Members of the armed forces may retire after just 20 years of service, meaning it's possible to retire as early as 37 years old. A military retirement plan pays pensions and benefits from the day you retire and continues to grow annually in line with the national cost of living. Whatever age you retire, life events can force you to make changes to your existing pension package. It could be the death of a spouse, a marriage or a new career that mean changes to your military retirement plan are…
If you are planning a vacation, or want to make sure you will have adequate time off should you become sick, you can figure out your leave allowance so far or plan ahead based on anticipated hours. This is simple if you are granted a set number of days off per year, but if you accrue a certain number of hours or days per days worked, the calculation has a few steps.
One of the advantages of a career in the military is that you can begin collecting retirement pay immediately after you retire despite your age. As stated on Military.com, you could begin receiving retirement pay as early as 37-years old. Also, as the cost of living increases, so does your retirement pay. Finally, a number of states--in the eastern, western and middle part of the country--do not charge taxes on military retirement.
Due to recent changes in retirement options, the military now offers an especially desirable retirement pay program. Your date of entry into service determines which of the three non-disability retirement plans applies to you. If you entered the military before Sept. 8, 1980, your pay will be calculated under the Final Pay plan. If you entered after Sept. 8, 1980, your pay will be calculated under High 3. If you entered after Aug. 1, 1986, and served on active duty, you have the unique option of choosing the Career Status Bonus (CSB) REDUX plan. Calculate military retirement by hand or…
All branches of the military reserve receive one of two types of retirement benefits. These types are called Final Pay and High-3, and the benefit that applies to you depends on your date of entry into service. For those who entered before September 8, 1980, you will receive Final Pay Benefits. For those who entered on or after that date, you'll receive High-3. Keep in mind that although you can retire as soon as you've accrued 20 years of service, you cannot collect benefits until age 60.
At first glance, the military retirement system may seem confusing. There are three main non-disability retirement programs, and the plan that pertains to you depends on the nature of your service and your date of entry into the military. Regardless of your plan, in order to retire, you'll need at least 20 qualifying years of military service in active duty or the reserve---and for a year to count as a qualifying year, you must have accrued 50 or more retirement points in that year. You should be notified annually with a statement of how many points you've earned, but you…
Military retirement planning is important as your years of service accumulate. However, many aspects of the military's retirement policies are complex and can confuse personnel who are nearing retirement., You, as a member of the military, have rights as well as duties concerning your retirement pay--and you need to understand them clearly before the time you choose to retire.
The U.S. military has a retirement system for those who spent their careers in one of the service branches and a disability pension system for those who suffer from service-related disabilities. These are separate systems, with each having its own rules and requirements.
Retirement benefits are one of the most important reasons to complete a career in the military. It is vitally important for each reservist to understand the eligibility process for retirement pay at age 60. As a reservist nears 20 satisfactory years of military service, she must take the time to review her career records to ensure she has adequately met the requirements for retirement.
The United States Department of Veterans Affairs, or VA, offers pension benefits for widowed spouses and dependent children who had a retired military family member pass away. The claimant can file to receive the pension benefits if meeting certain requirements concerning her living conditions if she is the spouse. The dependent children may be eligible for the pension benefit depending on their age and living conditions.
Military retirement comes with many benefits from continued health insurance to a regular paycheck every month. Apart from simply living out your service contract, there are several strategies you may employ to maximize your retirement benefits. Through careful planning, you could find yourself earning a very solid income at an early age.
The U.S. Department of Labor notes that garnishment occurs when an individual fails to pay a debt and, as a result, his creditor sues him for the debt, wins and requests a writ of garnishment from the court. A creditor with a valid writ of garnishment may garnish both wages and bank accounts.
The taxation of your retirement pay depends upon whether it is based upon length of service, or disability. Understanding how your pay is taxed will aid you in determining how much, if any, tax should be withheld.
The term "qualified retirement plan" applies to plans covered by the Employee Retirement Income Security Act, or ERISA. The law does not cover public sector pensions, however, including federal government plans such as the military retirement system. Military pensions are therefore considered nonqualified plans.
Members of the military reserve serve the country part time, usually training for one weekend each month and two entire weeks out of the year. Though they serve part time, reservists are eligible for many benefits, including retirement pay. This benefit is available for veterans who reach the age of 60, and who have served at least 20 years in the military. Pay during retirement is calculated based on a point system, providing the highest benefits for members who have put in the most actual duty time.
When you serve as a member of military services in the U.S. Army, Navy, National Guard or Army Reserves, you are entitled to a certain level of retirement benefits based on your years of service. The military retirement benefits cease once you die, however. If you believe there is any possibility that you might leave a surviving spouse behind, you must make provisions to ensure your widow receives military retirement benefits following your death.
Retirement pay for military retirees stops when they die. To ensure that surviving spouses still receive this benefit, military retirees must sign up for the Survivor Benefit Plan. The Survivor Benefit Plan is an insurance plan that offers a monthly payment to surviving spouses, children and former spouses.
Military veterans are wise to retire to a community with a nearby veterans' medical facility. If you are a veteran with medical benefits from the Department of Veterans Affairs (VA), a number of excellent full-service VA medical centers are located in communities that have a lot to offer you during retirement. Consider relocating to a temperate climate to maximize your health with plenty of outdoor activity.
Retirement pay for the U.S. Military Reserves is based on accrued points. The more points you have, the more you will be paid in your retirement. Points are calculated in accordance with the amount of service you performed--the more time you spent, the more drills you attended, the more classes you took to further your value to the military, the more points you will have and the higher your retirement pay will be.
Retiring from the military will cause a lot of changes. You will have to consider your total retirement savings, the scope of your pension plan, your benefit eligibility and whether you will need to find additional employment when you exit the service. Proper planning will help with the transition back to civilian life.
The Civil Service Retirement System is a contributory retirement system for those employed by the federal government. Through this retirement system, employees share the costs of their entitled annuities by having a percentage of their pay contributed to the system. Both civilian and military citizens may be eligible for participation.
One of the benefits of serving in the Reserve or National Guard for any branch of the U.S. military is the ability to access retirement funds. However, there are some qualifications that must be met in order to do so, and they are slightly more stringent than the requirements of active-duty soldiers.
Although military members traditionally earn lower incomes than their civilian counterparts, it doesn't exclude them from opportunities to save for the future. The military does not offer a 401k. Instead, it has a special savings program called the Thrift Savings Plan that works essentially the same way.
The military presents harsh demands to both the member and the member's family, especially a spouse. A military spouse often sacrifices as much as the military member to this difficult lifestyle. For this reason, the U.S. military determined long ago that divorced spouses are entitled to a portion of a military member's retirement benefits. The hard part comes when you try to collect.
Military retirement can be a time-consuming affair when a service member tries to prepare for civilian life while finishing up his current requirements. However, there are a number of leave options that members can use to get time off. These options include terminal leave, "use or lose" and special leave.
There are many different reasons you may need to apply for medical or disability retirement from the military. In general, there isn't a long application process, but you will need to be evaluated by a medical professional in order to prove that you should receive retirement funds for medical reasons.
Military retirement pay is generally taxable; however, disability retirement pay is not taxable to the extent that it is based on the percentage of disability. Additionally, veterans benefits, such as education and grants for medical equipment, are not taxable by the federal government.
Whether you're active-duty military, active reserves or a National Guardsman, you are eligible for some form of retirement benefits when you reach 20 years of service. This benefit is based on your length of service, rank when you retired and the age at which you begin collecting benefits. You aren't just eligible for a pension, either. Military retirees can also continue using many special military benefits, such as commissaries and Space-A travel.
When deciding whether or not to join the military reserve many potential recruits see it only as a way to pay for college or supplement their current income. However, the military reserve helps it members in the long run by providing retirement benefits. If reserve members serve for at least 20 years they are entitled to a monthly retirement check and get other benefits like health care and retirement housing.
Tricare is comprehensive medical insurance that is provided for active duty military members as well as military veterans. It is meant to benefit members of the military, their families and dependents.Tricare is also open to National Guard members and their families, and to those in the army reserves. As of 2009, approximately 9.5 million families were covered by Tricare, according to Tricare.mil.
The following retirement benefit sources are taxable and must be reported as income: Non-disability retirement pay, unless received from the VA Retainer pay for transfers to Reserve units Payments for accrued leave Any private sector income, including capital gains and interest income
Although retiring from the military can be an exciting thought while enduring a long deployment, it takes careful planning to prepare for this life change. Retirement presents many challenges, including finding suitable housing and adjusting to your new budget. Transitioning from a life filled with structure to a more relaxed environment can even be intimidating for the hard core soldier. Learning how to prepare for military retirement can ensure that you enjoy the benefits of completing your military career.
When a member of the military retires, they are granted retirement pay. Calculating this pay requires knowledge of the retirement category the individual falls into and the number of years she served. There are three retirement categories a military member can retire under depending on when they began their career. These systems are Final Pay, High-3, and Career Status Bonus/Redux. Below is an outline of each system, who qualifies, and how to calculate retirement benefits for each.
Military spouses experience life in ways that civilian spouses can't fathom. Military families are provided with exceptional health care and the ability to travel to exotic destinations. After the member gives 15 to 20 years of his life, many ask what's in store and if they can maintain the same lifestyle after retiring. This lifestyle can be achieved by gathering information about the benefits the service member earned.
When divorce occurs, one of the first things decided is the division of any financial benefits. The government provides members of the military and their spouses many benefits. Thanks to the Uniformed Services Former Spouses Protection Act, spouses can continue to receive benefits even after divorce.
Retiring from the military is a bit different from finishing your service in a civilian setting. It's easy to retire from military service, but staying on a few extra years can increase your benefits.
