The Top Ten Financial Benefits for Military Families
By Debbie Gregory.
Are you taking advantage of some of the best financial benefits afforded to military families? A quick review of the following list will help you answer that question:
- Tuition-free college-Thanks to the Post-9/11 GI Bill, the cost of in-state tuition and fees at public colleges are covered for up to 36 months, or up to $21,970 per year for private colleges and foreign schools. Another added bonus is the housing stipend and money for books and supplies. Choosing a yellow ribbon school will stretch the benefit even farther.
- Veterans Administration loans – VA loans allow you to buy a house with no money down, and without having to purchase private mortgage insurance.
- Tax-free BAH- The monthly subsidy covering all or part of your monthly rent or mortgage payment as long as you’re in the military is tax-free.
- Low interest loans- Each branch of service has its own emergency-relief fund that offers small, interest-free loans for emergencies.
- Low-cost life insurance- Servicemembers’ Group Life Insurance costs a mere 7 cents per $1,000 of coverage/ month. This totals $336 a year for the maximum $400,000 coverage.
- Legal protection- The Servicemembers Civil Relief Act provides special legal benefits, including an interest-rate cap of 6% on any loans you took out before you were called to active duty and the right to terminate a lease due to PCS.
- Guaranteed return- The military’s Savings Deposit Program lets deployed servicemembers invest up to $10,000 in the program each time you are deployed. You receive 10% annual interest, compounded quarterly; the program lasts for up to three months after your return.
- Tax-Free Roth IRA- Servicemembers who are receiving tax-free combat-zone pay can deposit up to $5,500 into a Roth IRA, tax-free, and earnings come out tax-free as well.
- Low-cost retirement savings plan- The Thrift Savings Plan charges an annual expense ratio of just 0.029% of assets — whereas annual fees and expenses for 401(k) plans average between 1% and 2%.
- State tax breaks- If your legal residence is in a state that has no income tax, you can be shielded from taxes if you move to another state while on active duty.
Military Connection salutes and proudly serves veterans and service members in the Army, Navy, Air Force, Marines, Coast Guard, Guard and Reserve, and their families.